South Africa

Member since 2003

 

The Financial Action Task Force and the Eastern and Southern Africa Anti-Money Laundering Group assessed South Africa's AML/CFT system. The Mutual Evaluation Report of South Africa is a comprehensive review of the effectiveness of South Africa's measures and their level of compliance with the FATF Recommendations. 

The report concluded that South Africa has a solid legal framework for combating money laundering and terrorist financing but significant shortcomings remain. In particular, the country needs to pursue money laundering and terrorist financing in line with its risk profile, including by proactively seeking international cooperation, detecting and seizing illicit cash flows, and improving the availability of beneficial ownership information. Authorities need to make better use of the financial intelligence products provided by South Africa’s financial intelligence unit. The country should also improve the application of the risk-based approach by obligated entities and supervisors. The assessment was led by the International Monetary Fund.

South Africa's measures to combat money laundering and terrorist financing

7 Oct 2021

South Africa's measures to combat money laundering and terrorist financing are delivering results
Read more
Mutual Evaluation of South Africa - 2021

Ratings

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

South Africa Mutual Evaluation - 2021

R.1 - Assessing risk & applying risk-based approach
PC
R.2 - National cooperation and coordination
PC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
PC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
NC
R.7 - Targeted financial sanctions related to proliferation
PC
R.8 - Non-profit organisations
NC
R.9 - Financial institution secrecy laws
LC
R.10 - Customer due diligence
PC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
NC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
PC
R.15 - New technologies
NC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
NC
R.18 - Internal controls and foreign branches and subsidiaries
PC
R.19 - Higher-risk countries
LC
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
PC
R.23 - DNFBPs: Other measures
PC
R.24 - Transparency and beneficial ownership of legal persons
PC
R.25 - Transparency and beneficial ownership of legal arrangements
PC
R.26 - Regulation and supervision of financial institutions
PC
R.27 - Powers of supervisors
PC
R.28 - Regulation and supervision of DNFBPs
PC
R.29 - Financial intelligence units
LC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
C
R.32 - Cash couriers
PC
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
LC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

South Africa Mutual Evaluation - 2021

IO1
ME
IO2
ME
IO3
ME
IO4
ME
IO5
LE
IO6
ME
IO7
ME
IO8
ME
IO9
LE
IO10
LE
IO11
ME

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

Other related content 

  • 5 Nov 2024

    South Africa's progress in strengthening measures to tackle money laundering and terrorist financing Since the 2021 assessment of South Africa's measures to tackle money laundering and terrorist financing and the 2023 Follow-Up report, the country has taken a number of actions to strengthen its framework.

  • 25 Oct 2024

    Jurisdictions under Increased Monitoring - 25 October 2024 Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. Additional countries, Algeria, Angola, Côte d’Ivoire and Lebanon, are now also subject to increased monitoring. Senegal is no longer subject to increased monitoring by the FATF.

  • 23 Feb 2024

    Jurisdictions under Increased Monitoring - 23 February 2024 Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. Two additional countries, Kenya and Namibia, are now also subject to increased monitoring. Barbados, Gibraltar, Uganda and the United Arab Emirates are no longer subject to increased monitoring by the FATF.

  • 2 Feb 2024

    Joint Summary of Meeting Outcomes Some 40 representatives from 21 countries including 18 ESAAMLG jurisdictions convened in Cape Town, South Africa, where they attended a weeklong Financial Action Task Force (FATF) Standards Training Course on Anti-Money Laundering, Countering the Financing of Terrorism and Countering the Financing of Proliferation (AML/CFT/CFP).

  • 28 Nov 2023

    South Africa's progress in strengthening measures to tackle money laundering and terrorist financing South Africa has made progress to address the technical compliance deficiencies identified in its Mutual Evaluation. The country has been re-rated on eighteen Recommendations.

  • 27 Oct 2023

    Jurisdictions under Increased Monitoring - 27 October 2023 Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. One additional country, Bulgaria, is now also subject to increased monitoring. Albania, Cayman Islands, Jordan and Panama are no longer subject to increased monitoring by the FATF.

  • 23 Jun 2023

    Jurisdictions under Increased Monitoring - 23 June 2023 Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. New jurisdictions subject to increased monitoring are Cameroon, Croatia and Vietnam.

  • 24 Feb 2023

    Jurisdictions under Increased Monitoring - 24 February 2023 Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. New countries subject to increased monitoring are South Africa and Nigeria. Morocco and Cambodia are no longer subject to increased monitoring by the FATF.

  • 24 Feb 2023

    Outcomes FATF Plenary, 22-24 February 2023 The second Financial Action Task Force FATF Plenary under the two-year Singapore Presidency of T. Raja Kumar took place on 22-24 February 2023.

  • 7 Oct 2021

    South Africa's measures to combat money laundering and terrorist financing South Africa's measures to combat money laundering and terrorist financing are delivering results

  • 25 Jun 2021

    Outcomes FATF Plenary, 20-25 June 2021 During this 5-day virtal Plenary delegates from the Global Network and observer organisations discussed key issues to strengthen global action against the financial flows that fuel crime and terrorism. These included the mutual evaluation of South Africa and Japan.

  • 26 Feb 2009

    Mutual Evaluation of South Africa South Africa has made good progress in developing its system for combating money laundering (ML) and the financing of terrorism (FT) since its last FATF mutual evaluation in 2003, according to an assessment of the implementation of anti-money laundering and counter-terrorist financing (AML/CFT standards in South Africa. This assessment was jointly conducted by the FATF and the Eastern and Southern Africa Anti-Money Laundering Group ESAAMLG.

  • 3 Jul 2006

    FATF Annual Report 2005-2006 South Africa held the Presidency of the 17th Plenary year of the FATF, during which strengthening the global network to combat money laundering and terrorist financing was a priority.