National Treasury welcomes the latest Financial Action Task Force (FATF) progress report, which indicates positive progress made by South Africa in addressing technical compliance deficiencies in its anti-money laundering system. The FATF published the follow-up report “South Africa: Follow–up Report on Technical Compliance Re-rating” (South Africa 2nd Follow-Up Report) on 28 November 2023.
This Follow-Up Report (FUR) details the country’s progress in addressing the 20 technical compliance deficiencies identified in South Africa’s 2021 FATF Mutual Evaluation Report (South Africa 2021 MER). The FATF 2021 Mutual Evaluation Report was compiled after an extensive review of the extent to which South Africa’s legal framework and systems for anti-money laundering and combatting of terrorism financing (“AML/CFT”) complied with the 40 FATF Recommendations (or standards) and were being effectively implemented. Whilst the 2021 Mutual Evaluation Report had found South Africa deficient on 20 Recommendations, it had also found South Africa to comply or largely comply with 20 other Recommendations.