Pretoria: South Africa’s delisting from the Financial Action Task Force (FATF) greylist bodes well for the integrity and reputation of the country’s financial system, status as an investment destination and for the economy as a whole, says President Cyril Ramaphosa. South Africa has officially exited the greylist after successfully implementing key reforms to combat money laundering and the financing of terrorism.
According to South African Government News Agency, President Ramaphosa highlighted the significance of this achievement in his newsletter, stating that it enhances South Africa’s international reputation and global standing. He noted that being greylisted had previously positioned the country as risky for investors.
Just over two years since the FATF identified deficiencies in South Africa’s financial system that increased its vulnerability to financial crimes, a multidisciplinary team led by the National Treasury has successfully orchestrated the country’s exit from the greylist. The President emphasized that this milestone reflects progress in tackling corruption and financial crimes, setting the stage for further improvements.
The decision to remove South Africa from the greylist was made during the FATF Plenary meetings held from October 22-24, 2025, in Paris, France. President Ramaphosa explained the practical implications of greylisting, which include challenges in obtaining credit and accessing international financial services, reduced foreign direct investment, capital outflows, and restricted cross-border transactions.
He further noted that the perception of increased risk financially impacts citizens and businesses, increasing the cost of living and doing business, and potentially leading to higher taxes and less fiscal space for social spending. Investor hesitation, he added, can negatively affect job creation and sustainability.
The President expressed optimism that South Africa’s exit from the greylist would alleviate pressure on citizens, businesses, and government. He anticipated a return of international financial confidence and a reduced risk perception, which would attract more foreign direct investment. Strengthening of the currency is expected to improve the cost of living and business operations.
President Ramaphosa highlighted legislative amendments that enforce more stringent reporting regulations concerning beneficial ownership, aimed at preventing individuals and syndicates from using complex structures to disguise corrupt activities. Additionally, regulatory amendments are being implemented to address terrorism financing, and government spending is being increased to counter money laundering and terrorism financing.
He acknowledged the challenges posed by the State Capture era, which weakened key institutions vital to maintaining the integrity of South Africa’s financial system. However, efforts are underway to rebuild these institutions. The President reiterated the importance of continued regulatory and institutional reforms as a demonstration of South Africa’s commitment to improving the business and investor climate.
President Ramaphosa concluded by stressing the need for further work to reduce and prevent financial crimes and enhance the efficiency of investigations, prosecutions, and convictions. He emphasized the importance of improving implementation, sustaining enforcement in both public and private sectors, and deepening international collaboration.