South Africa likely to get off grey list in 2025

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South Africa will likely only get off the Financial Action Task Force (FATF) grey list in 2025.

The country still has 14 outstanding action items it needs to address to satisfy the FATF requirements to get off the list.

South Africa was grey listed in 2023 after it was found wanting in terms of anti-Money Laundering and the Combating of the Financing of Terrorism controls.

When the FATF grey listed South Africa in February of last year, the country was required to address all 22 Action Items so as to exit the FATF grey list.

The Action Items have differing deadlines, falling between January 2024 to January 2025. South Africa has so far gone through eight of the 22 Action Items.

National Treasury says many of the 14 outstanding items are due in the last two reporting cycles says in September this year and January 2025.

Nedbank Economist Isaac Matshego says it’s encouraging that South Africa is making progress in dealing with the deficiencies identified by FATF.

“Although more work still needs to be done, we are encouraged by the fact that progress has been made in addressing deficiencies raised by the FATF financial flows in and out of South Africa significantly,” says Matshego.

National Treasury says in the next reporting cycle, South Africa is required to address nine of the outstanding Action Items in the Action Plan that are due in September, while the final five Action Items are due in January 2025.