Ramaphosa says SA's exit from grey list bodes well for country's economy

President Cyril Ramaphosa has welcomed the country's exit from the Financial Action Task Force (FATF) greylist, saying it bodes well for the country's economy as a whole.

Ramaphosa said the country’s exit from the FATF grey list is also good news for the integrity and reputation of South Africa's financial system, and for the country's status as an investment destination.

The FATF is a global body that aims to tackle global money laundering and terrorist financing and in 2023, it put South Africa on its ‘grey list’ for falling short of certain international standards.

Ramaphosa was reacting to the country's exit from the grey list in his latest newsletter.

In its statement last week, FATF welcomed what it says is 'significant progress' South Africa has made in improving its anti-money laundering and countering terrorism financing regime.

The organisation called for these improvements to be sustained by the country, which will keep it off the grey list.

Ramaphosa said it's just over two years since the FATF identified deficiencies that had rendered South Africa increasingly vulnerable to financial crimes.

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He said the dedication of a multidisciplinary team led by the National Treasury has culminated in the country's formal exit from the grey list, which stood in the way of greater investment.

Ramaphosa said the implications of greylisting are that countries struggle to obtain credit and access to international financial services.

He said the milestone is a boost for South Africa's international reputation and global standing, saying greylisting "results in a country being seen as risky for investors".