The European Union has removed South Africa from its list of high-risk financial jurisdictions, signaling renewed confidence in the country’s efforts to curb money laundering and terrorism financing. The decision follows South Africa’s exit from the Financial Action Task Force’s grey list in October, reversing a designation that had triggered tougher scrutiny of EU-linked transactions since 2023. With the change taking effect on January 29, trade and investment flows with Europe are expected to ease, offering welcome relief to a sluggish economy. Burkina Faso, Mali, Mozambique, Nigeria, and Tanzania were also delisted after strengthening their compliance regimes. While officials admit more reforms are needed, the move marks clear progress. It could help South Africa deepen EU ties if it loses its preferential US trade access under AGOA.
Daily Maverick
