Assessed by the FATF (Financial Action Task Force) in 2023, South Africa became the third G20 country—after Argentina and Türkiye—to be placed on the grey-list due to non-compliance with international standards for preventing money laundering, terrorist financing, and proliferation financing.
More Recently…
Following our assessment in February 2025, 20 out of the 22 identified items have been addressed—primarily through efforts by Parliament and South African banks—to strengthen the fight against financial corruption. Key areas of improvement include virtual currencies, cash couriers, and customer due diligence, amongst others
It was found that two actions remain outstanding;
- Increased prosecution of money laundering and terrorist financing cases.
- Enhanced oversight of non-profit organizations and informal money transfer services.
How has JHB’s commercial property been impacted?
- South Africa’s greylisting has damaged Johannesburg’s reputation, making it difficult to form global partnerships, hampering property transactions, foreign investments, and access to international funding sources.
- Stricter FICA and AML/CFT requirements have led to higher transaction costs, longer onboarding processes for tenants and buyers (especially foreign clients), and increased expenses for estate agents, property firms, and financial institutions.
- Enhanced due diligence and longer FICA processes have caused delays in property deals and onboarding, contributing to market sluggishness.
- The perception of South Africa as a high-risk country, coupled with increased compliance burdens, has led foreign investors to become more cautious, reducing direct investments and limiting market exposure.
- Stricter compliance measures have resulted in higher operational costs and increased service fees charged by financial institutions.
- Impact: These compliance challenges and perceptions of high risk may delay South Africa’s removal from the greylist, prolonging market uncertainty and hindering recovery efforts
Accountable institutions who play a role in the Greylist and are governed by the FIC Act
- Financial Institutions
- Accountants and Auditors
- Commercial Property Brokers
- Other Estate Agents
- Landlords and Tenants
- Trust companies
- Attorneys
How can YOU help?
- Cooperate Fully with FICA: Promptly provide valid ID, proof of address, and other required documents when transacting.
- Avoid Using Cash for Property Deals: Opt for traceable banking channels to reduce suspicion of money laundering.
- Be Transparent About Source of Funds: Clearly explain and document the origin of funds used for deposits, purchases, or rentals.
- Report Suspicious Activity: Be aware of scams or unusual property dealings and report them to the relevant authorities.
- Work with Registered FFC Certified Estate Agents: Choose agents who follow compliance protocols to ensure transactions are legitimate.
- Understand Legal Obligations: Educate themselves about anti-money laundering (AML) rules and the importance of verification.
Promote Ethical Conduct: Encourage a culture of honesty and integrity in all business dealings
POSITIVES
✅Strengthening of the AML/CFT financing system
✅Raised awareness of the importance of compliance and due diligence
👏Johannesburg aspires to emulate how the Western Cape excels and leads in the Commercial Property Sector and Compliance Standards
South Africa remains committed to making substantial progress on these remaining issues, with the goal of achieving full compliance ahead of the next re-assessment in October 2025 and securing removal from the Greylist.
We look forward to our country moving beyond this unfavourable perception and becoming fully capable of participating in International trade.