South Africa has made progress in addressing many of the technical compliance deficiencies that have been beforehand recognized on illicit flows. It now has a change to exit the FAFT record by October.
The nation was flagged in February 2023 for deficiencies in combating cash laundering, terrorist financing, and proliferation funding.
South Africa stands on the cusp of a monetary breakthrough, poised to exit the Monetary Motion Activity Power’s (FATF) gray record—a designation for nations underneath elevated scrutiny for lax oversight of economic flows—after being flagged in February 2023 for deficiencies in combating cash laundering, terrorist financing, and proliferation funding.
Removed from a static blacklist, the gray record displays nations actively collaborating with FATF to strengthen their monetary methods, and South Africa’s decided reforms sign a resolute step towards restoring world confidence and financial credibility.
“These nations are subjected to elevated monitoring to make sure they implement agreed-upon motion plans to rectify these deficiencies,” the FAFT explains in an replace.
Notably, as of June 2025, Croatia, Mali, and Tanzania have been faraway from the gray record, whereas nations like Bolivia and the Virgin Islands (UK) have been added
For South Africa, the FAFTA says a group of assessors is ready to go to the nation this month and it could be faraway from the gray record by October. “The FATF has already concluded that South African authorities have fulfilled all or nearly the entire required actions,” FATF President Elisa de Anda Madrazo instructed press.
She defined that the upcoming go to will give attention to confirming that reforms to fight cash laundering and terrorist financing haven’t solely been applied, however that they’re sustainable.
Talking on the sidelines of the G20 finance ministers and central financial institution governors’ assembly in South Africa earlier this week, De Anda stated; “They are going to assess, report again to the plenary, and a choice might be made.”
De Anda, additionally met with South Africa’s central financial institution governor on the G20 occasion; “reaffirming the authorities’ dedication to addressing FATF considerations. What I can say is we do see political dedication from South Africa,” she defined.
Learn additionally: Cash laundering: The monetary most cancers killing Africa
South Africa, implications of leaving FATF gray record
Regardless that being positioned on the gray record doesn’t set off fast penalties, “it might severely hurt a rustic’s economic system and status. It usually undermines confidence within the monetary sector and limits entry to worldwide help and funding,” De Anda cautioned.
Underscoring the purpose, a 2021 report by the Worldwide Financial Fund (IMF) discovered that gray itemizing can cut back capital inflows by as a lot as 7.6 per cent of a rustic’s GDP.
That being the case, it follows that “removing from the gray record would mark an enormous milestone for Africa’s most industrialised economic system, doubtlessly restoring investor confidence and bettering capital flows.”
In accordance the FAFT, the Monetary Motion Activity Power and the Jap and Southern Africa Anti-Cash Laundering Group assessed South Africa’s AML/CFT system. The evaluation was led by the IMF and it resulted within the Mutual Analysis Report of South Africa, recording the nation’s stage of compliance with the FATF calls for.
“The report concluded that South Africa has a strong authorized framework for combating cash laundering and terrorist financing however vital shortcomings stay,” the FAFT stated in it’s report.
It, nonetheless, identified that regardless of the progress, South Africa must pursue cash laundering and terrorist financing measures consistent with its danger profile, together with by proactively searching for worldwide cooperation, detecting and seizing illicit money flows, and bettering the provision of useful possession info.
The report says South Africa authorities have to make higher use of the monetary intelligence merchandise offered by South Africa’s monetary intelligence unit. “The nation also needs to enhance the applying of the risk-based method by obligated entities and supervisors.”
FAFT president counseled the progress made, stating; “For the reason that 2021 evaluation of South Africa’s measures to sort out cash laundering and terrorist financing and the 2023 Comply with-Up report, the nation has taken quite a lot of actions to strengthen its framework.”
She stated consistent with the FATF Procedures for mutual evaluations, South Africa has reported again to the FATF on the motion it has taken since their mutual analysis.
“Total, South Africa has made progress in addressing many of the technical compliance deficiencies that have been recognized,” she concluded.
Tanzania, clear out of FAFT gray record
As of October 2023, Tanzania was listed within the FATF Gray Checklist, which made it one of many jurisdictions underneath elevated monitoring.
Once more as identified, being on the FAFT Gray Checklist just isn’t essentially a nasty factor, quite the opposite; “it implies that the nation is actively working with the FATF to deal with strategic deficiencies in its regime to counter cash laundering, terrorist financing, and proliferation financing.”
A authorities report introduced that; “The United Republic of Tanzania (URT) has been formally faraway from the Monetary Motion Activity Power (FATF) grey-list efficient 13 June, 2025.”
The report acknowledged to that Tanzania, was grey-listed (positioned underneath elevated monitoring) by FATF in October, 2022.
With a clear slate, the IMF and Tanzanian authorities introduced earlier this month that they’ve reached staff-level settlement on the fifth assessment underneath the Prolonged Credit score Facility (ECF).
“As soon as permitted by the IMF Govt Board, Tanzania will acquire entry to US$441 million in financing,” the report says.
The IMF notes that Tanzania’s financial outlook is favorable, an is having fun with sturdy progress, low inflation, an improved present account, and elevated international change liquidity.
“In FY25/26, well-balanced public income measures are anticipated to take care of fiscal and debt sustainability, whereas safeguarding precedence social spending,” reads the IMF report.
The IMF goes on to level out that Tanzania’s continued implementation of local weather adaptation and mitigation insurance policies, will assist strengthen its resilience to climate-related dangers.
Notably, a workers group from the Worldwide Financial Fund (IMF) led by Mr. Nicolas Blancher, visited Tanzania throughout April 2-17, 2025, and held discussions on the fifth assessment underneath the Prolonged Credit score Facility (ECF), and the second assessment underneath the Resilience and Sustainability Facility (RSF).
A press assertion shared on the assembly introduced to that topic to approval by the IMF Govt Board, the critiques will make accessible to Tanzania about US$440.8 million, bringing the full IMF monetary help underneath the ECF association to about US$907.4 million and about US$343.6 million underneath the RSF.
“I’m happy to announce that the IMF group and the Tanzanian authorities have reached a staff-level settlement on the insurance policies wanted to finish the fifth assessment underneath Tanzania’s ECF-supported program, and the second assessment of the RSF association,” Mr. Blancher stated noting that the IMF’s Govt Board will talk about the critiques additional.
In keeping with the IMF, Tanzania’s financial exercise has been sturdy, with actual GDP progress reaching 5.5 p.c in 2024 and projected to extend to six p.c in 2025.
It additional notes that inflation, at 3.3 p.c in March, has remained subdued and under the Financial institution of Tanzania (BoT) goal of 5 p.c.
Nonetheless, the IMF cautions that; “Whereas the financial outlook is favorable, dangers are tilted to the draw back. The exterior surroundings is unsure, with dangers from a slowdown within the world economic system and commerce, geoeconomic fragmentation, additional intensification of the battle within the DR Congo, and decreased international improvement help.”
“On the home entrance, the upcoming nationwide elections might improve dangers of fiscal pressures or, extra broadly, reform slowdown,” warns the IMF.
