South Africa's FATF Greylist Exit: A Progressive Step In The Continued Path Towards Integrity?

On 24 October 2025, South Africa was officially removed from the Financial Action Task Force ("FATF") greylist, following almost three years of intensive reform efforts to address critical concerns identified by the FATF. South Africa was first placed on the greylist in February 2023 based on several strategic deficiencies in its anti-money laundering and counter-terrorism financing frameworks.

These shortcomings were largely attributed to institutional weaknesses arising from the period of state capture (a term used colloquially to refer to the illegitimate use of state control for corrupt and improper purposes in South Africa) which resulted in an erosion of law enforcement and regulatory bodies' capacity to detect, investigate, and successfully prosecute financial crimes. The FATF identified 22 action items that South Africa needed to address, including improving the verification and accuracy of beneficial ownership information, enhancing