The FATF’s October 2025 Plenary in Paris marked a defining moment for global financial governance.
South Africa’s removal from the grey list was one part of a much larger story, one that highlights how collaboration, reform, and accountability are reshaping the global fight against illicit finance.
With new standards on beneficial ownership, digital assets, and jurisdictional reviews, the outcomes of this year’s meeting will shape how financial systems operate and cooperate worldwide. Read our full analysis of what happened, why it matters, and what comes next!
FATF 2025: Global Outcomes and the Future of Financial Governance
Illicit financial flows, money laundering, terror financing, and proliferation financing are not just regulatory issues. They weaken public institutions, distort markets, and threaten global security and development. Every jurisdiction, from established financial centres to emerging economies, faces exposure to these risks.
For countries like South Africa, which rely heavily on investment and trade, the consequences of financial crime are particularly severe. The ability to show progress on financial transparency and governance is not only a matter of compliance but a measure of credibility in the global economy.
Last week, all eyes were on Paris, where the Financial Action Task Force (FATF) held its October 2025 Plenary meeting. These meetings are among the most significant in global financial governance. Representatives from more than 200 jurisdictions across the FATF Global Network gathered to evaluate countries’ progress in strengthening their anti-money laundering (AML), countering the financing of terrorism (CFT), and countering proliferation financing (CPF) frameworks.
The FATF Plenary also allows countries listed under the International Cooperation and Review Process (ICRG) to report on their reform efforts. The process is rigorous and based on mutual evaluation, data exchange, and close collaboration between governments, regulators, and law enforcement bodies.
For South Africa, the meeting marked a decisive moment. After more than two years on the FATF grey list, the country was assessed for possible removal. The outcome had significant economic and reputational implications, and the result was positive.
What is the FATF and What Kind of Organisation Is It?
The Financial Action Task Force (FATF) is an inter-governmental body, not a private or corporate organisation. It was established in 1989 by the G7 nations and today includes 39 full members, along with a broad network of regional bodies and observer organisations, covering over 200 jurisdictions.
Its purpose is to set global standards and promote effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and proliferation financing.
The FATF does not act as a global “police force.” Instead, it works by peer pressure and cooperation. Member and partner countries commit to meeting FATF’s 40 Recommendations, undergo mutual evaluations, and, if shortcomings are found, are placed under increased monitoring (the “grey list”) or subject to a call for action (the “black list”).
When a country is listed, it signals to the global financial community that there are strategic deficiencies in its AML/CFT systems. This affects risk perception, investor confidence, and access to international financial services.
There are two categories of listing:
- The grey list, for jurisdictions with strategic deficiencies that are working with the FATF to improve.
- The black list for jurisdictions that fail to cooperate and present serious risks to the international financial system.
Being listed has real-world consequences. It increases compliance costs, limits cross-border financial access, and affects investor confidence.
Inside the FATF Listing Process
Countries under increased monitoring develop an action plan in cooperation with the FATF and their regional bodies, such as ESAAMLG (Eastern and Southern Africa Anti-Money Laundering Group). Progress is reviewed at each plenary session.
At each meeting, FATF members determine whether:
- The country has completed its action plan and warrants an on-site assessment.
- The country should remain listed while further progress is made.
- The country has failed to cooperate and may face blacklisting.
The October 2025 Plenary in Paris was one of the most closely watched in years. Jurisdictions including South Africa, Nigeria, and Mozambique were evaluated for potential delisting, while others awaited new designations.
Setting the Stage: Key Developments from June 2025
At the June 2025 Plenary, FATF members made several decisions that shaped the October session.
- South Africa’s Progress: FATF confirmed that South Africa had largely completed its action plan and was ready for an on-site visit to verify that reforms were being implemented effectively.
- Payment Transparency: Recommendation 16 was revised to improve traceability of cross-border and virtual-asset transactions.
- Unintended Consequences (UIC): FATF introduced a monitoring framework to evaluate how AML and CFT measures might affect financial inclusion or nonprofit operations.
- List Adjustments: Croatia, Mali, and Tanzania were removed from the grey list, while Bolivia and the British Virgin Islands were newly added.
These updates reinforced FATF’s ongoing shift toward assessing the effectiveness of reforms, not just their existence on paper.
South Africa’s Path to Removal
South Africa was placed on the grey list in February 2023 following a FATF evaluation that identified significant weaknesses in its AML and CFT systems. These included gaps in law enforcement coordination, supervision of non-financial sectors, and access to beneficial ownership data.
Over the next two years, the government, the Financial Intelligence Centre (FIC), the National Treasury, and enforcement agencies implemented a comprehensive reform programme. By mid-2025, FATF acknowledged strong progress, including:
- Increased international cooperation and mutual legal assistance in asset recovery cases.
- Improved risk-based supervision for non-financial sectors such as real estate, legal, and accounting services.
- Creation of a central beneficial ownership register for companies and trusts.
- A rise in complex money-laundering and terrorist-financing prosecutions.
- Enhanced capacity for financial intelligence analysis and dissemination.
- A revised national counter-terror financing strategy.
- Strengthened frameworks for asset seizure and confiscation.
- More effective enforcement of targeted financial sanctions.
Between July and September 2025, FATF assessors visited South Africa to verify that reforms were operational and sustainable. Their findings confirmed significant progress, leading FATF members to vote for South Africa’s removal from the grey list during the October 2025 Plenary.
The decision recognises not only technical improvements but also a demonstrated political commitment to sustaining these reforms.
Global Outcomes of the October 2025 Plenary
While South Africa’s delisting was a major highlight, the FATF meeting produced several other important outcomes that shaped the global financial landscape.
Countries Removed from the Grey List
South Africa, Nigeria, and Mozambique were formally removed after completing their action plans. Their progress reflects the growing strength of financial governance across the African continent and serves as a model for other regions.
Countries Added to the Grey List
A small number of jurisdictions, including certain offshore and island economies, were added due to ongoing deficiencies in beneficial ownership transparency and limited monitoring of virtual asset activities.
High-Risk Jurisdictions
North Korea, Iran, and Myanmar remain on the FATF black list as high-risk jurisdictions. FATF members reiterated calls for all countries to apply countermeasures when dealing with these financial systems due to continued non-compliance and systemic risks.
Standard Updates and Global Reforms
The Plenary reaffirmed its global priorities. These include improving beneficial ownership transparency, regulating digital asset transactions, and strengthening payment monitoring across jurisdictions. New guidance on beneficial ownership registries and digital traceability is expected to take effect in 2026.
Regional Collaboration and Technical Assistance
The FATF emphasised the importance of cooperation with regional partners, including MONEYVAL, ESAAMLG, and the Asia Pacific Group. New frameworks were approved to support knowledge-sharing and technical assistance for developing countries that face capacity challenges in implementing global standards.
Together, these outcomes demonstrate that the FATF’s work is not limited to individual jurisdictions but reflects a collective international effort to close gaps in the global financial system.
Why It Matters for South Africa and the Global Financial System
For South Africa, the outcome has real-world consequences. Being on the grey list raises compliance costs for banks and investors dealing with South African institutions. It can make cross-border payments slower, reduce foreign investment, and increase the cost of capital.
While some wealthy jurisdictions, such as Monaco, may weather grey-listing with minimal impact, owing to abundant capital and entrenched reputations, developing economies feel it acutely. For South Africa, delisting would signal confidence, reduce perceived risk, and boost investment sentiment.
The South African Reserve Bank has previously stated that the grey-listing “has been a costly episode” that the country cannot afford to prolong.
South Africa’s removal from the grey list signals restored confidence in its financial integrity. For the country, it means reduced compliance costs, faster cross-border transactions, and renewed investor trust.
Globally, the October 2025 decisions strengthened cooperation and reinforced FATF’s authority as a global standard-setter. The combined delistings of South Africa, Nigeria, and Mozambique illustrate that meaningful reform is achievable through coordination and accountability.
The decisions also send a message to other jurisdictions: grey-listing is not permanent, but it requires sustained effort, political will, and collaboration between public and private sectors.
The global financial community benefits when more jurisdictions meet FATF standards. Consistent compliance enhances market transparency, reduces opportunities for illicit activity, and builds resilience across the international system.
The FATF’s Role in Maintaining Global Stability
Although the FATF is not a formal global regulator, its influence is significant. Its evaluations affect:
- Access to correspondent banking relationships.
- Credit ratings and investment decisions.
- Multilateral lending conditions from institutions such as the IMF and World Bank.
- Policy reforms across both public and private sectors.
The FATF’s framework of cooperation and peer accountability ensures that financial integrity remains a shared responsibility. Through its Global Network, the organisation continues to bridge gaps between developed and developing economies and to promote a unified approach to combating financial crime.
What Comes Next
Following the October 2025 Plenary, several developments will shape the FATF’s priorities in 2026:
- Implementation of new guidance on beneficial ownership and digital-asset oversight.
- Expansion of traceability standards for fintech and virtual asset service providers.
- Continued follow-up assessments for recently delisted countries to ensure reforms remain effective.
- Enhanced technical assistance for jurisdictions still under increased monitoring.
- Further integration of data-driven tools to detect cross-border financial crime.
These measures reflect FATF’s intent to adapt to new risks while maintaining consistency across global frameworks.
Why This Moment Matters
The October 2025 Plenary represented more than individual achievements. It demonstrated the collective responsibility of the international community to safeguard the integrity of the global financial system.
For the FATF, it reinforced its role as the world’s leading authority on financial governance. For South Africa, it closed a demanding period and reopened doors to trade, investment, and global confidence. For other jurisdictions, it highlighted a clear path toward reform and the value of sustained political and institutional commitment.
Illicit finance remains a persistent global challenge, but the outcomes of this Plenary show that shared standards and cooperation can produce real progress. Each successful reform strengthens the global system as a whole.
Financial Integrity Depends on Cooperation and Continued Vigilance.
The FATF October 2025 Plenary was more than a procedural review. It was a test of trust, coordination, and collective progress.
For South Africa, it marked a return to full standing in the global financial community. For the FATF, it reaffirmed its central role in building a fair and transparent international economy. For the world, it served as a reminder that financial integrity depends on cooperation and continued vigilance.
Illicit financial networks cross borders. So must the solutions. The October 2025 Plenary showed that global progress is possible when nations act together with purpose and resolve.
