HAWKEN MCEWAN: Why FATF’s greylisting decision demands new era of financial integrity

The verdict is in: SA has been removed from the Financial Action Task Force (FATF) greylist. It’s a milestone worth celebrating, but not a finish line. The reforms of the past two years were critical, yet the real work begins now. Sustaining this progress will demand more than compliance checklists; it calls for resili

ence, transparency and a lasting shift in how we think about financial integrity.

Since SA was placed on the greylist in February 2023, accountable institutions and the public sector have scrambled to address the FATF’s demands. We have passed technical checklists, rewritten policies, improved reporting and invested in oversight.

Now, with our removal from the list, the immediate payoff is a welcome list, from renewed investor confidence to more buoyant financial markets. Delisting restores not only SA’s global credibility but also its ability to attract sustainable foreign investment. It signals to the world that our financial system is fundamentally sound and that the reforms made under pressure have laid the groundwork for long-term growth.

Compliance fatigue

Now that the decision is in, we must not drop our guard. We must take care that we don’t fall into the trap of “mission accomplished”. Meeting the FATF’s demands should be seen as a new baseline.

The biggest risk in the coming year is compliance fatigue, the urge to relax efforts once the urgency fades. Too many jurisdictions, including Cambodia, Nicaragua, Panama and Pakistan, have experienced relisting after complacency set in. Financial crime is like a game of cat and mouse. As criminals up their game and become ever more creative in their schemes, FATF standards will evolve and strengthen. Countries thus need to constantly improve to keep up. Taking Fica and compliance seriously has to be the new normal. We must build systems that are inherently resilient to evolving financial crime.

Renewed focus on building the economy

Just a year ago, finance minister Enoch Godongwana expressed concern about the country’s slow economic growth and the lingering impact of the country’s 2023 greylisting, which had increased compliance costs and reduced investor confidence.

The medium-term budget policy statement on November 12 is likely to emphasise economic growth and fiscal consolidation with renewed urgency in an increasingly tumultuous world of geopolitics and economic relations. International investors and ratings agencies explicitly factor our anti-money-laundering/counter-financing terrorism effectiveness into their assessments of SA as an investment destination, so I expect the connection between financial integrity and economic credibility to be especially prominent.

When banks and other private institutions can more effectively detect and report suspicious activities, they are not just protecting their own businesses from fines and reputational risk but strengthening the entire ecosystem that reduces illicit outflows and attracts legitimate foreign investment.

By harnessing improved processes and innovative technology to detect money-laundering, they also play their part in helping to flag illicit flows and recover stolen funds that should be contributing to our fiscal framework. Every rand that flows through proper channels generates tax revenue, supports formal employment and contributes to sorely needed GDP growth.

Banks and financial institutions are only one part of the picture. Law firms, real estate agents and high-value-goods dealers represent critical junctions in the flow of capital. These accountable institutions are precisely the links in the chain that need assistance and support to avert being harnessed for illicit financial flows.

They are part of the country’s frontline defences against financial crime, terrorism financing and other nefarious schemes. When small law firms and estate agents see compliance as red tape rather than risk mitigation, the entire system suffers. Only 70% of law firms and estate agencies have submitted their risk and compliance returns, according to the Financial Intelligence Centre. That mindset has to shift: investing in regulatory technology and compliance must become a competitive and reputational differentiator, not a burdensome cost.

Technology backbone for resilience

Fighting financial crime is a team sport. Historically, collaboration among institutions, regulators and law enforcement was fragmented — one of the key findings that led to the greylisting. Today, we are seeing progress: real-time digital information sharing and a stronger ecosystem built on trust and technology.

Every rand that flows through proper channels generates tax revenue, supports formal employment and contributes to sorely needed GDP growth.

To sustain resilience, institutions must adopt forward-looking tools. Technology is moving beyond mere data capture to proactive threat detection. Artificial intelligence (AI) and advanced analytics can identify emerging typologies before they become entrenched criminal methodologies.

Technology alone, however, is not a silver bullet. Without proper governance, skilled personnel and institutional commitment, even the most sophisticated systems will fail. Technology amplifies human expertise; it does not replace it. The institutions that will thrive in 2026 and beyond will be those that view compliance investment not as a cost, but as a competitive advantage — one that enables them to onboard clients faster, serve markets more confidently and operate with the transparency that global stakeholders demand.

The real victory

SA’s delisting is in no way a sign of invincibility — it’s a sign of potential for both good and bad futures. We have shown that co-ordinated reform can restore trust and credibility. The challenge now is to ensure these systems become permanent infrastructure, not temporary fixes.

The FATF verdict gives us breathing room. That room shouldn’t be a place where signs of relief turn into resting on our laurels. Our continuing efforts will define the next decade of financial integrity in SA and, to no small degree, our economic health.