SA removed from EU high‑risk list
South Africa has been officially removed from the European Union’s list of High‑Risk Third Country Jurisdictions, a key milestone that follows the country’s exit from the Financial Action Task Force (FATF) grey list in October 2025.
National Treasury welcomed the EU’s decision published on 9 January and effective from 29 January as a boost to the economy, saying it reflects significant progress in strengthening the nation’s anti‑money‑laundering and counter‑terrorism financing (AML/CFT) systems.
Being on the EU list had forced European banks and financial institutions to subject transactions involving South Africa to enhanced due diligence, including more intrusive checks, additional documentation and senior management sign‑offs..
These measures increased the cost and complexity of trade, payments and investment flows. Delisting removes these automatic requirements, potentially making cross‑border business with the EU smoother and more cost‑effective.
The EU said South Africa along with Burkina Faso, Mali, Mozambique, Nigeria and Tanzania has addressed strategic deficiencies identified by the FATF and strengthened the effectiveness of its AML/CFT regime.
However, Treasury cautioned that delisting does not mean all challenges are resolved. Authorities still need to bolster systems for prevention, identification, investigation and prosecution of money‑laundering and terrorism‑financing crimes. South Africa is slated to enter a new round of FATF evaluation, with a final report expected at the plenary in October 2027.
Economists and business groups welcomed the move as a vote of confidence that could encourage investment and reinvigorate financial flows between South Africa and EU markets.