MONEY LAUNDERING, TERRORISM FINANCING: EU REMOVES SOUTH AFRICA FROM HIGH-RISK LIST

MONEY LAUNDERING, TERRORISM FINANCING: EU REMOVES SOUTH AFRICA FROM HIGH-RISK LIST

• 13 January 2026
• National Treasury
• SA Legal Academy

The European Union (EU) has removed South Africa from its list of high-risk jurisdictions with ‘strategic deficiencies in their systems for combating money laundering and terrorism financing’ likely to pose a threat to the ‘proper functioning’ of EU internal markets. National Treasury announced this in a media statement nevertheless noting that:

• ‘much work still needs to be done’ to strengthen deficiencies in the prevention, identification, investigation and prosecution of the activities concerned, and that
• while EU financial institutions may adjust their risk assessment policies towards South Africa as they see fit, they are under no obligation to do so.

According to the statement, in terms of EU policy member states subject high-risk countries to:

• more rigorous and intrusive checks
• increased documentation requirements
• continuous monitoring, and
• ‘senior management approval for transactions’.

‘These requirements add friction to financial transactions and flows, affecting trade, payments and investment,’ the statement notes.

Effective from 29 January 2026, the EU decision was prompted by South Africa’s removal from the International Financial Action Task Force grey list in October 2025, when Britain automatically followed suit.

• National Treasury media statement

Published by SA Legal Academy Policy Watch

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