The Financial Action Task Force (FATF) is a global body that sets anti-money laundering (AML) and counter-terrorist financing (CTF) standards. Non-compliant countries risk being greylisted or blacklisted, which can hurt their economy by discouraging investment and increasing transaction costs. South Africa was greylisted in 2023, making FATF compliance essential for maintaining financial stability, investor confidence, and smooth international transactions.

Key Outcomes of the FATF Meeting

• Strengthening Financial Inclusion – FATF revised its standards to support financial inclusion, ensuring simplified risk-based measures for lower-risk clients to improve access to banking and financial services.

• Payment Transparency – FATF is working on updates to Recommendation 16 to improve payment tracking and security while making transactions faster and cheaper.

• High-Risk Jurisdictions – Senegal has been removed from the increased monitoring list, but North Korea, Iran, and Myanmar remain classified as high-risk due to ongoing financial crime concerns.

• Financial Crimes & Compliance – A new report was adopted on financial flows linked to online child exploitation, helping financial institutions track and stop these activities.

• Proliferation Financing & Sanctions Evasion – FATF is conducting public consultations to better address how illicit actors bypass sanctions.

• Gatekeeper Compliance Review – FATF reviewed the role of accountants, lawyers, and trust service providers in preventing money laundering and corruption. South African accountants must ensure they comply with evolving FATF standards.

• Private Sector Collaboration – A global forum on financial crime risk will be held in Mumbai in March 2025, fostering cooperation between businesses, regulators, and civil society.

Why This Matters for South African Accountants

The latest FATF meeting in February 2025 focused on developments will shape South Africa’s AML, risk management, and compliance landscape. Accountants should stay updated on new FATF guidance, especially regarding financial transactions and client risk assessments.

Read more in the 2025.2-GN-Outcomes-Notice-February-2025 issued by the Financial Intelligence Centre.