South Africa Exits FATF Grey List, Marking Boost for Economic Confidence

South Africa, one of Sub-Saharan Africa’s largest economies, has officially been removed from the Financial Action Task Force (FATF) “grey list” of jurisdictions under increased monitoring, a move expected to ease capital flows and bolster investor sentiment.

At its October 24, 2025 plenary meeting, the FATF announced that South Africa — along with Nigeria, Mozambique and Burkina Faso — is no longer subject to enhanced monitoring. The eligibility for removal was based on significant reforms in anti-money-laundering (AML) and counter-terrorist-financing (CFT) systems, including improved inter-agency cooperation, stronger financial intelligence gathering and enhanced enforcement action.

The South African government hailed the decision as “a major achievement” and a milestone in restoring the country’s financial credibility. Analysts said that delisting should lead to lower costs for cross-border transactions, easier correspondent banking access and potential uptick in foreign direct investment.

Early market reaction was positive: the South African rand appreciated by around 0.6% against the U.S. dollar following the announcement, and benchmark bond yields edged lower as risk premia declined.

While economic growth remains a challenge, experts say the removal from the grey list signals improved institutional strength and will likely enhance business and investor confidence. However, they caution that lasting impact will depend on sustaining reforms, strengthening corruption-fighting capabilities and delivering on structural issues like energy, transport networks and governance.

For the gambling and gaming sectors — as well as regulated financial services — this regulatory milestone may translate into smoother access to international payment networks, improved licensing environments and less friction when dealing with foreign clients and platforms that require clean jurisdictional status.