Great start to 2026 as South Africa exits another finance high-risk list
South Africa now is set to enter a new round of FATF evaluations starting in late 2026, with a final report expected in October 2027.
National Treasury has welcomed the decision by the European Union (EU) to officially remove South Africa from its list of “High-Risk Third Country Jurisdictions”. The decision, published on 9 January 2026, is set to take effect on 29 January 2026. This marks a major milestone in restoring the country’s reputation as a secure destination for international investment.
South Africa was originally added to the EU List in August 2023 as an automatic consequence of its “greylisting” by the Financial Action Task Force (FATF) in February of that year. The EU’s removal of the country follows South Africa’s successful exit from the FATF greylist and the United Kingdom’s high-risk list in October 2025.
Why the high-risk delisting matters for your pocket
Being on the EU’s high-risk list was more than just a bad label; it had real-world consequences for trade. EU law required financial institutions to apply “enhanced due diligence” to all transactions involving South African parties. This meant more intrusive checks, increased documentation requirements, and constant monitoring, all of which added “friction” to financial flows.
While EU banks are no longer legally compelled to apply these rigorous checks, they are still allowed to adjust their own internal risk policies as they see fit. However, the removal generally signals a “vote of confidence” in the integrity of the local financial system.
President Cyril Ramaphosa noted in October 2025 that exiting these lists reduces pressure on citizens and businesses by lowering the cost of doing business and attracting foreign direct investment.
“As our currency strengthens, the cost of living for citizens and doing business will improve. The far-reaching regulatory and institutional reforms we have instituted, as part of the FATF process, are a clear demonstration of South Africa’s commitment to improving the business and investor climate, and to ongoing reform,” Ramaphosa said.
A long road from state capture
The initial greylisting was a consequence of systemic weaknesses that were aggravated during the state capture era, which saw a hollowing out of law enforcement and key financial institutions. To fix this, a multidisciplinary team led by National Treasury worked to address dozens of strategic deficiencies.
Key reforms included passing major Amendment Acts in 2022 and introducing strict requirements for “beneficial ownership”. These changes make it harder for syndicates to hide dirty money behind complex webs of shell companies and trusts.
| Milestone | Date Achieved | List Status |
|---|---|---|
| FATF Greylisting | February 2023 | Added |
| EU High-Risk List | August 2023 | Added |
| FATF Delisting | 24 October 2025 | Removed |
| UK High-Risk List | 13 October 2025 | Removed |
| EU High-Risk List | 29 January 2026 | Removed |
No time for a victory lap
Despite the celebrations in 2025, the South African Revenue Service (SARS) and Treasury have warned that the work is not over. South Africa will enter a new round of FATF evaluations starting in late 2026, with a final report expected in October 2027.
SARS Commissioner Edward Kieswetter stressed that removing the high-risk designation is a milestone, not a finish line, and South Africa must remain vigilant to prevent a regression into financial criminality.