Ramaphosa Celebrates SA’s FATF Grey List Exit

President Cyril Ramaphosa has declared South Africa’s removal from the FATF grey list a crucial milestone for the nation’s financial standing. The announcement signals a major boost for the country’s economic prospects and global reputation.

In his weekly newsletter, Ramaphosa stated the delisting “bodes well for the integrity and reputation of our financial system.” He emphasized that this development strengthens South Africa’s status as an investment destination and benefits the overall economy.

The Financial Action Task Force (FATF), an international watchdog, had placed South Africa on its grey list in 2023. This action followed an assessment that identified strategic deficiencies in the country’s systems for combating money laundering and terrorist financing.

Significant Progress Recognized

Ramaphosa highlighted that a dedicated, multidisciplinary team led by the National Treasury worked tirelessly to address the FATF’s concerns. Their efforts resulted in the country’s formal exit from the grey list after just over two years. The FATF officially acknowledged the “significant progress” South Africa made in strengthening its financial safeguards.

As detailed in the complete version, there are several key factors to consider.

The president warned that grey listing carries serious economic consequences. It diminishes investor confidence and can lead to higher borrowing costs for the country. He noted that being perceived as a risky jurisdiction makes it more difficult to obtain credit and access international financial services.

Ramaphosa affirmed that South Africa’s exit from the FATF grey list will alleviate financial pressure on citizens, businesses, and the government. He said restoring international confidence and reducing risk perceptions will help attract more foreign direct investment.

Government Implements Key Reforms

To meet the FATF requirements, the government enacted several reforms. These included expanding the powers of the Financial Intelligence Centre (FIC) and introducing new laws for company ownership transparency. Legislative amendments now enforce more stringent reporting regulations around beneficial ownership.

“These changes will make it much more difficult for individuals and syndicates to funnel the proceeds of their corrupt activities,” Ramaphosa stated. He acknowledged that state institutions were weakened during the state capture era but affirmed the government is steadily rebuilding their capacity.

The president stressed that the FATF decision should not lead to complacency. He pledged that the government will use the delisting to support increased vigilance. The next phase will focus intensely on improving implementation and strengthening enforcement within both public and private institutions. Ramaphosa concluded by emphasizing the commitment to sustain these efforts and deepen international collaboration.