By PAUL O’DONOGHUE, Senior Correspondent
SOUTH Africa is widely tipped to be removed from the FATF (Financial Action Task Force) grey list at the body’s plenary meeting later today.
The move would be a major boost for the country, which was added to the watchlist in 2023. FATF sets international AML standards, while its grey list identifies countries with deficient AML measures.
Multiple sources told AML Intelligence that South Africa is expected to be removed from the list after improving its compliance framework. FATF will formally announce updates to its grey list after the conclusion of its plenary meeting later today,
The move would come as a major relief to South African officials. Jurisdictions on the grey list normally experience reduced international investment.
This is because financial institutions often apply more restrictive measures when dealing with organizations from grey listed countries.
South Africa’s hopes of exiting the list got a boost last year, after a positive FATF report. The body said South Africa improved its compliance with several key FATF recommendations.
South Africa’s central bank governor previously said he was confident the country would be removed from the list in 2025, given the work that is under way to fix identified issues.
Governor Lesetja Kganyago said being on the watch list had “been a costly episode for us”.
“The lesson is that joint efforts are required to look after the integrity of South Africa’s financial system. We all suffer when this is compromised,” he said.
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