South Africa and Nigeria Leave the FATF Grey List After October Plenary

How South Africa exited

South Africa was placed on the FATF grey list in February 2023. According to the National Treasury, the government addressed the deficiencies identified by the FATF through the 22 action items in its agreed action plan over 32 months, culminating in an on-site visit by assessors at the end of July 2025 to confirm that the reforms were sustainable.

The Treasury cautioned that delisting is the start of a broader process. The FATF expects countries that leave the list to show continued commitment through measurable outcomes, including successful investigations, prosecutions and sanctions. These will form the basis of South Africa's next mutual evaluation, which is expected to begin in the first half of 2026 and conclude in October 2027.

The chair of Parliament's Standing Committee on Appropriations called for continued compliance with FATF standards and said the removal was expected to boost investor confidence.

Why it matters

Grey listing affects how banks and other regulated firms assess risk in dealings with a country. Leaving the FATF grey list can reduce the enhanced checks applied to correspondent banking, payments, trade finance and investment involving the four countries, although firms must still apply their own risk-based assessments. Lenders, investors and multinationals active in these markets may see less compliance friction in cross-border transactions.

What happens next

Compliance teams should update country risk ratings, screening rules and onboarding procedures to reflect the October 2025 changes, and keep track of whether the delisted countries sustain their reforms ahead of future evaluations. The FATF publishes its updated lists after each plenary.

Sources

• National Treasury of South Africa: South Africa exits the FATF greylist on 24 October 2025
• Parliament of the Republic of South Africa: South Africa's exit from greylist a testament to enhanced anti-money laundering mechanisms