By Sameer Kumandan, MD of SearchWorks
On Friday, news broke that South Africa was removed from the Financial Action Task Force’s (FATF) grey list. This comes after the country made significant progress to improve the effectiveness of its anti-money laundering (AML) and counter financing of terrorism (CFT) efforts. The FATF recognised South Africa’s efforts to strengthen financial crime prevention back in June, setting the stage for the country’s exit from the grey list. The task force announced that SA had mostly completed the 22 action items listed in its action plan, paving the way for the removal. This means that South Africa is no longer subject to “increased monitoring” by the FATF and reassures investors, financial institutions, and trading partners that the country’s financial system is now safer and more compliant.
The FATF first grey-listed South Africa in early 2023 over failures to collect and coordinate intelligence on financial crimes and investigate and prosecute cases. While the decision has been welcomed across the public and private sectors, and exiting restores confidence in our financial system, this is hardly a finish line for government, regulators and accountable institutions. Continued reforms and more robust prosecutions are essential to maintaining this status.
After exiting the grey list, countries must continue to show measurable progress, particularly through successful investigations, prosecutions, and sanctions that address AML/CFT shortcomings. For South Africa, these efforts will be scrutinised again during the next FATF Mutual Evaluation, which is set to start in the first half of 2026 and wrap up in about two years’ time in October 2027.
Milestone achieved, but the work must continue
Celebrating this milestone is important, but the real challenge now lies in making improvements a permanent part of how our financial system operates. To build on the momentum, we must focus on these four key areas of action.
#1 Maintain and deepen the implementation of AML/CFT frameworks
SA must ensure the laws passed and updated are effectively enforced across all sectors by strengthening institutional capacity around enforcement, regulation and cross-border cooperation. We must also demonstrate a sustained increase in investigations, prosecutions and convictions for cases related to money-laundering and terrorist-financing.
#2 Ensure governance and accountability improvements continue
Removal from the grey list gives a reputational boost, but underlying governance weaknesses still need to be addressed. This means delivering transparent, timely action on high-profile corruption cases and embedding a culture of compliance and oversight across the public and private sectors.
#3 Leverage the delisting as a platform for broader economic reform
South Africa’s improved status can be used to attract foreign direct investment, improve the cost of capital, and expand cross-border trade and finance flows. It should also signal to markets and institutions that South Africa is stabilising its regulatory and financial integrity frameworks.
#4 Avoid complacency
The exit is only the beginning; sustained improvement must now be prioritised. South Africa could very easily be placed back on the grey list if continuous monitoring, auditing, evaluation and reporting mechanisms are not effectively maintained across government and other accountable institutions.
We cannot see delisting as a finish line; the fight against financial crime is ongoing. VOCA, from SW360, is an automated compliance platform designed to help businesses meet Financial Intelligence Centre Act (FICA) and AML/CFT requirements, and to efficiently and effectively manage risk. Automated compliance tools like VOCA are not a replacement for strong institutions and enforcement, but they make compliance more reliable, scalable, and measurable. By embedding technologies like this across the financial sector, South Africa can maintain the progress already made and solidify our credibility in global financial markets. Ends.
About SearchWorks
SearchWorks is South Africa’s largest data aggregation platform, offering access to a wide range of data sources that provide detailed and accurate information on individuals, businesses, trusts, and properties. Designed for professionals in industries such as finance, law, and real estate, SearchWorks empowers users to perform thorough due diligence, mitigate risks, and make informed decisions. By streamlining the process of gathering critical information, SearchWorks supports businesses in maintaining compliance, enhancing security, and improving operational efficiency. https://www.searchworks.co.za/
About VOCA
VOCA, powered by SearchWorks, is an advanced Verification, Onboarding, and Compliance Application designed to simplify and automate compliance processes for accountable institutions. Tailored to meet the specific needs of businesses across industries such as finance, law, and real estate, VOCA provides comprehensive solutions for conducting thorough KYC/KYB checks, managing risk assessments, and ensuring full compliance with the Financial Intelligence Centre Act (FICA). By offering real-time reporting and automated audit trails, VOCA enables organisations to enhance security, reduce manual effort, and maintain the highest standards of regulatory compliance, all while improving operational efficiency and customer satisfaction. https://www.voca.co.za/