South Africa

Public Administration Management Amendment Act 7 of 2025

The Republic of South Africa has enacted the Public Administration Management Amendment Act 7 of 2025, amending the Public Administration Management Act of 2014. The amendment provides for employee transfers and secondments, clarifies prohibitions on public servants conducting business with organs of state, establishes the National School of Government as a national department, and addresses employment disparities. The Act applies to all national and provincial government departments and public sector employees, with commencement on 31 March 2026.

South Africa Exits FATF Greylist After 32 Months

The FATF removed South Africa from its greylist on October 24, 2025, ending 32 months of increased monitoring that began in February 2023. South Africa completed all 22 Action Plan items, culminating in a successful on-site evaluation in July 2025. Going forward, South Africa must sustain its AML/CFT improvements and prepare for a mutual evaluation expected in the first half of 2026.

FIC 2024-25 Annual Report: Grey List Progress and Clean Audit

The Financial Intelligence Centre (FIC) released its 2024-25 annual report demonstrating continued progress in combating financial crime in South Africa. The report highlights that 55,262 registered institutions submitted over 13.4 million regulatory reports, contributing to approximately R144 million in recovered criminal proceeds. A FATF review team completed an on-site assessment in July 2025 to verify AML/CFT reforms, with a decision on South Africa's potential grey list exit expected at the October 2025 FATF plenary.

South Africa Exits FATF Grey List After 32 Months

The Financial Intelligence Centre announced South Africa's removal from the FATF grey list on 24 October 2025, ending 32 months of increased monitoring that began in February 2023. The removal follows successful remediation of deficiencies identified in the 2019 mutual evaluation, including enhanced DNFBP supervision capabilities and improved law enforcement collaboration. South Africa now prepares for its fifth round of mutual evaluations scheduled for 2026 to 2027.

General Laws Amendment Bill 2025 - Public Comment on AML/CFT Reforms

South Africa's National Treasury has published the draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2025 for public comment through Government Gazette No. 53955. The Bill proposes amendments to four pieces of legislation including the Financial Intelligence Centre Act, Financial Sector Regulation Act, Companies Act, and Nonprofit Organisations Act to address AML/CFT deficiencies identified in the 2021 FATF Mutual Evaluation Report. Public comments are due 13 February 2026.

Directive 11 of 2026: 2026 Risk and Compliance Return Submission Requirements

The South African Financial Intelligence Centre (FIC) issued Directive 11 of 2026 on March 31, 2026, mandating specified accountable institutions to submit their 2026 Risk and Compliance Return (RCR) electronically. The submission window opens May 4, 2026 and closes either June 30 or July 31, 2026 depending on the institution category. The directive requires completion of a self-assessment questionnaire covering ML, TF, and PF risks across three reporting years.

Valuator Requirements for Resolution Under FSR Act

The South African Reserve Bank Prudential Authority issued Prudential Communication 4 of 2026 establishing requirements for valuators appointed for resolution purposes under the Financial Sector Regulation Act, 2017. The communication sets out standards for independence, competence, governance, methodologies, information access, and reporting. Affected parties include valuators seeking appointment by the resolution authority and financial institutions subject to resolution proceedings.

Proposed Directive on Securitisation Vehicle Risk Disclosures

The South African Reserve Bank Prudential Authority issued Proposed Directive BA501 requiring issuer Special Purpose Institutions (SPIs) to disclose enhanced securitisation risk information. The directive replaces Directive 4 of 2017 and mandates that auditors include verification of Annexure A requirements in annual audits. Comments are being solicited on this proposed directive.

Amendment of Insurance Group Designation - Santam Insurance Group

The South African Reserve Bank Prudential Authority issued a notice amending the designation of Santam Insurance Group. The amendment was made by Ms Fundi Tshazibana, Chief Executive Officer of the Prudential Authority. The specific details of the amendment are contained in the attached PDF notice.

Proposed Directive - Revised requirements related to Interest Rates Risk in the Banking Book

The South African Reserve Bank Prudential Authority has issued a proposed directive for consultation on revised requirements related to Interest Rates Risk in the Banking Book (IRRBB). The directive incorporates recalibrated interest rate shocks that banks must apply to their banking book exposures for risk measurement purposes. This consultation follows international Basel Committee standards updates on IRRBB supervision.