South Africa has secured removal from the European Union's list of high-risk third-country jurisdictions. Authorities achieved this after exiting the Financial Action Task Force grey list in 2025. The South Africa EU high-risk list change takes official effect on 29 January 2026.

The country joined the grey list in 2023 over shortcomings in tackling money laundering and terrorism financing. The EU added South Africa automatically in August 2023. This prompted heightened checks on transactions, including more documentation and monitoring, according to National Treasury.

Reforms Boost Economic Momentum

National Treasury, the South African Reserve Bank, and other entities addressed 22 action items to exit the grey list. The South Africa EU high-risk list removal now permits EU financial institutions to revise risk policies at their discretion. However, challenges persist in strengthening anti-money laundering and counter-terrorism financing systems.

A new FATF evaluation begins in the coming months, with a final report due in October 2027.

"Preparation has begun in earnest, incorporating the lessons learnt and experience gained during the process to exit FATF greylisting," said National Treasury.

This step enhances positives for 2026, including projected 1.5% economic growth. Lower inflation around 3% and interest rate cuts to 6.25% support the outlook.

Treasury Highlights Ongoing Work

National Treasury emphasized that the South Africa EU high-risk list delisting does not force EU institutions to change policies. It allows adjustments based on individual assessments. The body acknowledged unresolved issues in prevention, investigation, and prosecution of illicit flows.

No further responses from EU officials or FATF appeared in the sources. Attempts to reach National Treasury for additional comment received no reply as of 14 January 2026, 12:00 SAST.