South Africa a step closer to redemption from the FATF Greylist

What does it mean when a country is in the FATF greylist and why should global shippers, traders, and financiers care..??

The Financial Action Task Force (FATF) is a global intergovernmental organisation that sets international standards and promotes effective policies to combat money laundering, terrorist financing, and the financing of weapons of mass destruction..

The FATF currently comprises 39 members — including 37 jurisdictions (such as South Africa) and 2 regional organisations: the Gulf Cooperation Council (GCC) and the European Commission..

What is the FATF “Grey List”..??

The FATF “grey list” refers to countries that the organisation has publicly identified as having strategic deficiencies in their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) frameworks..

The FATF classifies such jurisdictions under two distinct categories:

1. Jurisdictions under increased monitoring – These countries are working actively with the FATF to address identified weaknesses in their AML/CFT regimes within agreed timelines..

2. High-risk jurisdictions subject to a call for action – These are countries with significant shortcomings that are not making sufficient progress, and may face countermeasures or enhanced due diligence from the international community..

South Africa was placed in the first category in February 2023, signalling a need for reforms while maintaining cooperation with the FATF..

When greylisted, a country faces tougher scrutiny on cross-border financial transactions, reputational damage, and declining investor confidence..

In trade terms, it may mean longer due diligence processes, more questions from overseas banks, and additional friction in trade finance and payments — especially for importers, exporters, and those relying on letters of credit or correspondent banking..

South Africa’s journey: From State Capture to system reform

South Africa was placed on the greylist in February 2023 following concerns around insufficient enforcement of anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations.. The echoes of state capture still rang loud — a time when law enforcement was weakened and financial crimes operated unchecked..

But that narrative, it seems, is now shifting..

As of 13 June 2025, as per National Treasury, FATF announced that South Africa has “substantially completed” all 22 action items required under its remediation plan.. This is a monumental step forward, signalling a credible overhaul of the country’s financial crime-fighting capacity..

What changed..?? Key improvements made

According to the FATF and South Africa’s National Treasury, the country’s reform included:

• A sustained increase in prosecutions and investigations into complex money laundering and terrorism financing cases..

• Better supervision of high-risk sectors, including lawyers, accountants, estate agents and dealers in precious metals and stones (DNFBPs)..

• Timely access to accurate beneficial ownership information, helping authorities know who really controls legal entities..

• Improved coordination across agencies — notably between the Financial Intelligence Centre (FIC), the South African Police (SAPS), and the National Prosecuting Authority (NPA)..

• A comprehensive national counter-terrorism financing strategy, based on updated risk assessments..

All of these are central to the FATF’s 11 Immediate Outcomes — and by all accounts, South Africa is now ticking those boxes..

What comes next: The on-site visit

Before it is formally delisted, FATF has scheduled an on-site visit by its Africa Joint Group.. This visit — expected before the next FATF plenary in October 2025 — will verify the sustainability of reforms and ensure political will is still intact..

If that visit goes well, South Africa could be fully removed from the greylist — a move that would restore its financial credibility on the global stage..

Why this matters for trade and logistics

Let us be clear — greylisting has consequences far beyond banking halls..

1. Trade friction: Shipping lines, forwarders, and import-export companies in South Africa have been subjected to increased scrutiny from overseas financial institutions, insurers, and trade partners..

2. Slower payments: Due diligence processes often delay payments in and out of the country, especially under trade finance instruments..

3. Investor wariness: Greylisting dents investor confidence, affecting infrastructure investment critical to ports, terminals, and the logistics sector..

By exiting the greylist, South Africa stands to boost its ease of doing business, attract FDI into logistics corridors, and enhance trade confidence across regional and global partners..

The human story: A tribute to reform champions

In a poignant note, the South African National Treasury paid tribute to the late Advocate Rodney de Kock of the NPA, who played a pivotal role in South Africa’s greylist recovery efforts.. His contribution, though cut short by his passing in January 2025, is part of the foundation upon which this progress was built..

Regional parallels: Africa’s AML/CFT momentum

South Africa’s journey is part of a larger continental trend.. At the same FATF plenary, Mali and Tanzania were delisted, while Nigeria, Mozambique, and Burkina Faso were also cleared for on-site evaluations — a signal that the region is collectively tightening its compliance regimes..

This is critical for Africa’s broader participation in global trade and finance, as regulatory reliability becomes a competitive advantage in a world increasingly shaped by sanctions, compliance obligations, and ESG-linked financial standards..

Final thoughts: A grey cloud lifting

South Africa’s near-exit from the FATF greylist is not just a bureaucratic milestone — it is a signal of growing institutional resilience.. For those in the shipping, freight, logistics, and trade ecosystem, it is a welcome development that could ease transactional frictions and restore global confidence..

Now, with one final hurdle remaining — the on-site inspection — the country must stay the course.. Because in global trade, trust is currency.. and greylisting is a tax no one wants to pay..

Let us keep watching as October 2025 approaches..