SA'S FATF grey list exit marks key milestone, reform journey continues

Sars Commissioner Edward Kieswetter says delisting is a vote of confidence in SA's progress

- SIPHELELE DLUDLA

SOUTH Africa's removal from the Financial Action Task Force (FATF) grey list after nearly two years of intensive reform is being hailed as a milestone for the country's financial sector-yet experts warn it marks the beginning, not the end, of deeper structural changes.

On Friday, the FATF announced that South Africa was among four African countries who had been delisted from its "grey list" of countries under increased monitoring for deficiencies in combating money laundering and terrorist financing.

South Africa was placed on the grey list in February 2023 after the FATF identified 22 shortcomings in the country's anti-money laundering and counter-terrorist financing (AML/CFT) framework.

FATF, the global financial crime watchdog, had instructed the country to pursue money-laundering and terrorist financing in line with its risk profile, including by proactively seeking international cooperation, detecting and seizing illicit cash flows, and improving the availability of beneficial ownership information.

It said while South African authorities carry out some successful money laundering investigations, the proactive identification and investigation of laundering networks and professional enablers were not really occurring.