24 October 2025
MEDIA RELEASE
Historic milestone marks restoration of country’s financial integrity and global standing
Operation Phumelela today welcomes the Financial Action Task Force’s (FATF) decision to remove South Africa from its grey list of jurisdictions under increased monitoring, marking a pivotal achievement in the nation’s commitment to financial transparency and integrity.
After two years and eight months of intensive reforms, South Africa has successfully addressed all 22 action items identified by FATF – the global money laundering and terrorist financing watchdog – when it placed the country on the grey list. This demonstrates substantial progress in combating money laundering, terrorist financing, and proliferation financing.
“This is a watershed moment for South Africa’s financial sector and economy,” says Leila Fourie, chairperson of Operation Phumelela and CEO of the JSE. “Exiting the FATF grey list restores confidence in our financial system, strengthens our position as a leading African financial hub, and reaffirms our commitment to global standards of financial integrity.”
A testament to collaborative effort
Operation Phumelela acknowledges the extraordinary dedication of multiple stakeholders who made this achievement possible:
- National Treasury for coordinating the comprehensive reform programme
- Law enforcement agencies, including the Directorate for Priority Crime Investigation (Hawks), State Security Agency and National Prosecuting Authority, for sustained increases in complex money laundering and terrorist financing investigations and prosecutions
- Financial and non-financial regulators for implementing effective supervisory frameworks
- The Companies and Intellectual Property Commission (CIPC) and high court masters’ offices for developing beneficial ownership registries to ensure transparency
- Private sector financial institutions for enhanced compliance measures
Exiting in less than three years – ahead of the global median – highlights South Africa’s ability to drive reform when needed, and its determination to move beyond the legacy of state capture that weakened institutions of law enforcement and prosecution. The reforms implemented have strengthened our capacity to fight corruption, financial crime and economic misconduct.
Economic and investment implications
Grey listing has had significant adverse effects on South Africa’s economy, including:
- Reputational damage affecting investor confidence
- Increased borrowing costs
- Reduced foreign direct investment
- Enhanced scrutiny of cross-border transactions
Today’s exit from the FATF grey list is expected to:
- Restore South Africa’s reputation in global financial markets
- Reduce transaction costs for South African businesses
- Attract increased foreign investment
- Lower sovereign borrowing costs
- Strengthen regional financial integration across SADC and the African continent
While celebrating this milestone, Operation Phumelela emphasises that exit from the grey list is not the end of the journey, but the beginning of a sustained commitment to maintaining and strengthening South Africa’s anti-money laundering and counter-terrorist financing systems.
“The improvements implemented are permanent fixtures of our financial architecture,” says Fourie. “We remain committed to working with the FATF global network and our regional partners to preserve and advance the integrity of both the South African and global financial systems.”
Looking ahead
The exit from the grey list will enhance South Africa’s competitiveness as a regional financial hub. Operation Phumelela will continue its work to:
- Promote South Africa as a preferred destination for financial services and investment
- Support ongoing regulatory development to enable competitive global financial services from South Africa
- Facilitate public-private partnerships to combat financial crime
- Strengthen South Africa’s position as Africa’s leading financial centre
This achievement positions South Africa to leverage its restored reputation to attract investment, create jobs, and drive economic growth across all sectors.
About Operation Phumelela
Operation Phumelela is South Africa’s Financial Sector Competitiveness Taskforce, established to enhance the country’s position as a leading international financial centre and gateway for investment into Africa. The task force has been convened by industry leaders to work with government and regulators to implement structural reforms that improve competitiveness, deepen capital markets and support economic growth through enhanced financial sector capabilities. More information is available at its website, www.operationphumelela.org.za.
Operation Phumelela takes its name from the Zulu word meaning “to succeed” or “to achieve,” reflecting the initiative’s commitment to transforming South Africa’s financial sector competitiveness.
For more information or to arrange interviews, please contact:
- For Dr Leila Fourie, Pheliswa Mayekiso, email [email protected] or mobile +27 84 486 0502.
- For Dr Stuart Theobald (Operation Phumelela convenor), Jennifer Kann, email [email protected] or mobile +27 83 455 3289
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