South Africa Country Summary
Medium-High Risk
View full Ratings TableSanctions
Lower Concern
FATF AML Deficient List
Higher Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Higher Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
South Africa is on the FATF List of Countries that have been identified as having strategic AML deficiencies.
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in South Africa was undertaken in 2024. According to that Evaluation, South Africa was deemed Compliant for 5 and Largely Compliant for 32 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are currently no international sanctions in force against South Africa.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 41 |
| World Bank: Control of Corruption Percentile Rank | 46 |
South Africa grapples with significant corruption and crime challenges, despite having a robust anti-corruption framework and various laws aimed at addressing these issues. The pervasive nature of corruption, particularly linked to the legacy of former president Jacob Zuma, has hindered public sector accountability and enforcement of anti-corruption measures, while organized crime, human trafficking, and cybercrime continue to pose serious threats to societal resilience and safety.
Economy
South Africa is recognized as the most advanced economy in sub-Saharan Africa, characterized by a diverse and well-regulated investment climate supported by stable institutions, an independent judiciary, and a mature financial sector. The country serves as a regional hub for trade and investment, attracting foreign interest due to its robust capital markets and strengths in various industrial sectors. However, South Africa faces significant challenges, including a history of economic stagnation, persistent energy crises, and regulatory uncertainties, which hinder its investment appeal and economic growth prospects.
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