South Africa Has been Taken Off the EU High Risk List

South Africa has been formally removed from the European Union’s list of High-Risk Third Country Jurisdictions, a change the National Treasury says will ease compliance pressure with Europe and support smoother trade, investment and cross-border payments. Treasury welcomed the decision, which follows South Africa’s exit from the Financial Action Task Force (FATF) greylist and the United Kingdom’s high-risk list. The EU published the decision on 9 January 2026, which takes effect from 29 January 2026.

Why the EU Listed South Africa in 2023

South Africa was added to the EU list in August 2023, after the FATF greylisted the country in February 2023. Under EU rules, jurisdictions viewed as having weaknesses in combating money laundering and terrorist financing are classified as high risk, which triggers stricter compliance requirements for EU-based financial institutions handling transactions linked to those countries.

What the High-Risk Label Meant for Business

Treasury said the designation led to enhanced due diligence, including deeper transaction checks, additional documentation, continuous monitoring and, in some cases, senior management approval. In practice, these measures increased the time and cost of processing legitimate transactions, slowing trade payments and adding complexity to investment flows connected to South Africa.

The EU said South Africa strengthened its anti-money laundering and counter-terrorism financing (AML/CFT) framework and addressed the strategic deficiencies identified by the FATF. It also noted that South Africa met the commitments set out in its action plan, which supported both the FATF greylist exit and the EU’s decision to remove the country from its high-risk register.

Alongside South Africa, the EU also removed Burkina Faso, Mali, Mozambique, Nigeria and Tanzania after they exited the FATF greylist during 2025. The EU said these countries improved the effectiveness of their AML/CFT regimes and closed technical gaps linked to their action plans.

Treasury’s Warning on What Delisting Does Not Change

Treasury cautioned that delisting does not automatically force European banks to adjust internal risk models. While the legal obligation to apply enhanced due diligence falls away, financial institutions can still apply their own controls based on internal policy. Treasury also stressed that removal from the EU list does not mean South Africa has resolved every weakness linked to financial crime. Further work remains to strengthen the prevention, detection, investigation and prosecution of money laundering and terrorism financing.

South Africa is expected to enter a new FATF mutual evaluation cycle in the coming months, with the final report scheduled for presentation to the FATF plenary in October 2027. Treasury said preparations are already under way, drawing on lessons from the country’s exit from greylisting.