The European Union (EU) has officially removed South Africa from its list of “High-Risk Third Country Jurisdictions,” marking a significant vote of confidence in the country’s ongoing efforts to strengthen its financial integrity and combat money laundering.
According to a statement released by the National Treasury on Tuesday, 13 January 2026, South Africa was originally placed on the EU’s high-risk list in 2023. This designation was an “automatic consequence” of the country’s greylisting by the Financial Action Task Force (FATF), the global watchdog for anti-money laundering and counter-terrorism financing standards.
South Africa’s removal from the FATF Grey List in October 2025 paved the way for its delisting by the EU. This development signals progress in addressing systemic weaknesses in the country’s financial regulatory framework.
What Does This Mean for South Africa?
Being removed from the EU’s high-risk list has practical and economic implications:
- Reduced Regulatory Burden: Financial transactions between South Africa and EU member states will no longer be subject to enhanced due diligence requirements. Previously, these rules demanded rigorous checks, extensive documentation, continuous monitoring, and senior management approval for transactions involving high-risk jurisdictions.
- Boost to Trade and Investment: The easing of compliance obligations is expected to facilitate smoother financial flows, making South Africa a more attractive destination for European investors and trade partners.
- Strategic Trade Positioning: If South Africa were to lose its preferential access to the U.S. market under the African Growth and Opportunity Act (AGOA), strengthening ties with Europe could help offset potential declines in exports to the United States.
Other African Countries Also Delisted
South Africa is not alone in this achievement. Five other African nations—Burkina Faso, Mali, Mozambique, Nigeria, and Tanzania—have also been removed from the EU’s high-risk list following improvements in their anti-money laundering and counter-terrorism financing (AML/CFT) regimes.
The EU noted that these countries had “strengthened the effectiveness of their AML/CFT frameworks and addressed technical deficiencies,” leading to their removal.
The EU’s decision was published on Friday, 9 January 2026, and will take effect on 29 January 2026. While this marks a major milestone, the Treasury cautioned that work is far from complete. South Africa still faces “deficiencies in the prevention, identification, investigation, and prosecution of money laundering and terrorism financing.”
For South Africans weary of crime and corruption, this reminder underscores the need for continued vigilance and reform. Nevertheless, the progress achieved so far is undeniable.
Despite this positive development, South Africa faces another looming challenge: the potential loss of AGOA benefits. AGOA provides duty-free access to the U.S. market for most African exports, and losing this status could deal a serious blow to South Africa’s already sluggish economy—particularly at a time when manufacturing confidence is at its lowest since the pandemic.
