SA must address two remaining deficiencies to be removed from the Financial Action Task Force (FATF) greylist by October 2025 (revised from the initial June deadline), experts warn, with technology seen as a critical enabler.
The global anti-money laundering watchdog greylisted SA in February 2023, citing weaknesses in combating money laundering and terrorism financing. Of the 22 required reforms, SA has resolved 20, leaving complex investigations and prosecutions of financial crimes as the final hurdles.
Jonny Bell, senior director of financial crime compliance at LexisNexis Risk Solutions, said technology can streamline compliance, enhance real-time risk detection and strengthen due diligence.
“Automated sanctions screening, AI-based fraud detection and biometric identity verification are key tools that help monitor suspicious activity and prevent breaches,” said Bell. “For ICT and telecoms firms, delisting would improve international market access and boost investor appeal.”
Recent findings from iiDENTIFii and World Wide Worx underline growing digital ID fraud concerns, with over half of South African businesses anticipating increased threats. Adoption of ID verification technology is on the rise, including AI (50.5%) and biometrics (39.5%).
Mark Walker, IDC VP for the Middle East, Turkey and Africa, said combating illicit financial flows requires enhanced monitoring of digital communication and financial platforms.
“While South Africa has infrastructure in place, more must be done to strengthen oversight, especially by telecoms and ISPs,” he said.
"In effect, monitoring electronic communications and trading platforms/exchanges will need attention, and responsibility for this may be placed on telecoms, ISPs and platform providers. FATF compliance is a dynamic process, and requirements evolve as new technologies emerge. Compliance today does not guarantee removal from the list. However, if demonstrable progress is made after each evaluation report, South Africa will be on track," Walker continued.
A February 2025 FATF statement acknowledged SA’s progress, citing improved regulatory enforcement and greater access to beneficial ownership data. However, Bell warned the greylist status still poses significant risks.
“It can drive away foreign investment, raise transaction costs and erode confidence in the country’s financial system,” he said. “Other African nations took an average of 28 months to exit the list. If South Africa follows suit, removal may only come by April 2026.”
National Treasury, along with regulators and private sector partners, continues to work towards full compliance. Experts stress that while FATF lacks enforcement power, its assessments heavily influence international business sentiment and policy.
Bell added that organisations invest heavily in risk management and compliance systems to underpin their compliance programmes, and strengthening these systems builds a robust compliance framework that remains efficient, effective and explainable for regulators.
“Technology enables removal from the greylist, but true success requires harmony between new regulations and legislation, technology, human oversight and engagement from the institutions operating within the country,” he said.
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