Greylist exit 'not finish line'

REFORMS: MILESTONE RESTORES INVESTOR CONFIDENCE, BUT COUNTRY CAN'T REST

- Liesl Peyper

COMPLEXITY. The country's capacity to fight financial crime will continue to be monitored - and 'proof of prosecutions' will be required. Picture: Shutterstock

(Shutterstock)

South Africa's official removal from the Financial Action Task Force (FATF) greylist marks an important milestone for the country's financial system, but experts warn stronger prosecutions and more reforms lie ahead if it is to maintain this status.

Vincent Gaudel, financial crime compliance expert at Lexis-Nexis, says even though the delisting is "a great outcome" and a recognition of South Africa's progress, continued momentum is now key.

In an interview with Moneyweb on Friday, minutes after the announcement, Gaudel noted that all stakeholders in SA have shown what they are capable of, but continuous delivery on these positive outcomes will now need to be sustained.

SA was put on the greylist in 2023, after the financial watchdog found strategic weaknesses in its anti-money-laundering and counter-terrorism-financing framework.

It meant SA's technical compliance with many FATF recommendations was deficient and its effectiveness to prevent, detect, investigate and prosecute financial crime failed to meet international standards.