Tag: Financial Action Task Force (FATF)

In our current economic climate, many Micro, Small and Medium Enterprises (MSMEs) are facing a harsh reality. Although the market is awash with money, access to traditional credit remains limited. This is largely due to regulations like Basel III, which require banks to hold more capital and tighten their risk assessments.

South Africa has tightened Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations since the Financial Action Task Force (FATF) greylisting in 2023. The country has now been recently removed from the FATF greylist after two years of scrutiny. However, financial crime remains widespread.

We welcome the decision by the Financial Action Task Force (FATF) to remove South Africa from the list of jurisdictions under increased monitoring, also known as the “grey list”. The FATF announced this decision on Friday, 24 October, at the conclusion of its plenary held from 20 to 24 October 2025. This announcement came 32 months after our country was placed on the grey list in February 2023.

Tax evasion goes far beyond legal tax avoidance. It is the practice of illegally hiding income or profits to avoid paying tax, costing countries over $500 billion a year. In many cases, tax crime and hidden owners depend on opaque ownership structures that conceal who really owns assets, where transactions are flowing, and other patterns of criminal behaviour.

With the Financial Action Task Force (FATF)’s review imminent, the country faces more than the risk of remaining greylisted. Outdated and costly international money transfers undermine competitiveness, increase trade risks and deter investment. A month remains before the FATF’s follow-up site visit. This visit will decide whether the country is ready to be taken off the dreaded FATF greylist.

Flashy Artificial Intelligence (AI) applications like generative art and self-driving cars dominate headlines. Still, AI and Machine Learning (ML) play a quiet background role in our daily lives. Nowhere is AI’s growing influence more apparent than in financial services. AI systems are increasingly protecting both the financial system and its customers.

Designated Non-Financial Businesses and Professions (DNFBPs) registered with the Financial Intelligence Centre (FIC) have shown positive efforts. Importantly, their commitment has significantly contributed to progress. And as a result, South Africa is now closer to exiting the Financial Action Task Force (FATF) grey list.

With South Africa tightening its grip on crypto regulations, Crypto Asset Service Providers (CASPs) must act now to avoid compliance failures. As of April 30, 2025, new crypto compliance rules in form of Directive 9 will introduce stricter requirements for tracking and reporting crypto asset transactions.

The 2025 Budget Speech, delivered on 12 March 2025, made it clear that financial crime enforcement and compliance are priorities. The government has allocated increased funding for forensic investigations, regulatory oversight and tax compliance monitoring

After years of threatening non-compliant trusts with penalties for late tax return submissions, South African Revenue Service's (SARS) leniency seems to be ending.