(MENAFN) South African President Cyril Ramaphosa celebrated the country’s removal from the Financial Action Task Force (FATF) gray list as a major milestone in its fight against corruption and financial crimes.

In his weekly newsletter, Ramaphosa said the move “bodes well for the integrity and reputation of our financial system, for our status as an investment destination, and for the economy as a whole.” He noted that South Africa had been gray-listed in February 2023 after FATF identified 22 shortcomings in its anti–money laundering (AML) and counter–terrorist financing (CFT) framework.

Ramaphosa credited a multidisciplinary team led by the National Treasury for the progress, saying the country had strengthened its regulatory frameworks, improved oversight, and enhanced the detection and prosecution of illicit financial activity. The FATF welcomed South Africa’s improvements, calling on authorities to sustain them.

The president explained that gray-listing affects a country’s access to international finance, foreign direct investment, and cross-border transactions, which can increase business costs and constrain social spending. Exiting the list, he said, restores investor confidence, strengthens the currency, and reduces the cost of living and doing business.

Significant reforms have included expanding the Financial Intelligence Centre’s mandate in 2022, tightening reporting rules on beneficial ownership to prevent misuse of shell companies and trusts, and introducing regulations to better investigate and prosecute terrorism financing.

Ramaphosa stressed that this progress signals a robust commitment to tackling corruption and rebuilding state institutions weakened during the state capture era. However, he cautioned against complacency, emphasizing that enforcement, international cooperation, and continual vigilance remain critical.

“Exiting the gray list demonstrates that our anti–money laundering system is beginning to act against corruption and other financial crimes. It lays the basis for further improvements,” he wrote.

FATF President Elisa de Anda Madrazo also acknowledged South Africa’s strengthened capacity to detect and prevent money laundering and terrorism financing, highlighting the country’s enhanced financial oversight.

Ramaphosa concluded that while much work remains, the reforms and improvements mark a significant step toward restoring confidence in South Africa’s financial system and global standing.

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