South Africa AML regulations underwent significant changes in 2025, especially across financial services, crypto asset supervision, beneficial ownership reporting, and market conduct oversight. After years of regulatory reform following the country’s FATF grey listing in 2023, South Africa made notable progress in strengthening its anti-money laundering framework and improving financial sector compliance.
#What Changed in 2025?
#South Africa Was Removed from the FATF Grey List
One of the most important developments in 2025 was South Africa’s removal from the FATF grey list. This followed extensive work by local regulators, including the Financial Sector Conduct Authority (FSCA), the Financial Intelligence Centre (FIC), and National Treasury.
Since 2023, South Africa has been working to address weaknesses identified by the Financial Action Task Force. These reforms included stronger requirements for Risk Management Compliance Programmes (RMCPs), improved beneficial ownership transparency, and closer monitoring of financial institutions.
For financial services providers, this meant more regulatory inspections and stronger enforcement of FICA compliance. The FSCA paid particular attention to whether firms could demonstrate that their RMCPs were not only documented, but also properly implemented.
#Stronger Focus on Beneficial Ownership
Beneficial ownership reporting became a major compliance priority in 2025. Regulators placed greater pressure on accountable institutions to collect, verify, and submit accurate ownership information.
This trend affected companies, trusts, and other structures supervised by institutions such as the CIPC, the Master’s Office, the FIC, and the FSCA. For financial businesses, transparency around ownership and control is now a core part of AML compliance in South Africa.
#Crypto Asset Service Providers and the Travel Rule
Crypto Asset Service Providers (CASPs) remained under close regulatory attention. CASPs have been required to register with the FIC as accountable institutions since December 2022, while those offering financial services also require FSCA licensing.
In 2025, the FIC’s Directive 9, commonly known as the Travel Rule, came into effect. This rule applies to institutions involved in the transfer or receipt of crypto assets on behalf of clients.
Under the Travel Rule, ordering and beneficiary CASPs must collect and retain specific transaction information and provide it to authorities when requested. The purpose is to reduce the risk of crypto assets being used for money laundering, terrorist financing, or proliferation financing.
#What to Expect in 2026
#Progress on the COFI Bill
The Conduct of Financial Institutions Bill, known as COFI, is expected to remain one of the most important regulatory developments in 2026.
COFI is designed to create a more unified conduct framework for financial institutions. It will replace several sector-specific rules with a broader regulatory structure covering areas such as financial services, insurance, pension funds, and collective investment schemes.
Once implemented, COFI will affect how financial businesses are authorised, supervised, and expected to treat customers. Although the final timeline is still developing, the bill is expected to move forward in 2026, followed by a transitional period.
#FSCA Attention on Artificial Intelligence
The FSCA is also expected to focus more closely on the use of artificial intelligence by financial services providers.
Although South Africa does not yet have a specific AI regulation for the financial sector, the FSCA has already started reviewing how firms use AI in areas such as data analysis, sales, marketing, product distribution, and internal processes.
In 2026, financial institutions may see further guidance on AI governance, cloud computing, open finance, and emerging technology risks.
#Further Development of the Twin Peaks Model
South Africa’s Twin Peaks regulatory model is also expected to continue developing. Under this model, the FSCA focuses on market conduct and consumer protection, while the Prudential Authority oversees prudential regulation and financial stability.
By 2026, certain prudential supervision responsibilities are expected to move from the FSCA to the Prudential Authority, including areas related to pension funds, collective investment schemes, and friendly societies.
#AML and CTF Compliance Will Remain a Priority
South Africa AML regulations are likely to become even more detailed in 2026 as the country prepares for the next FATF Mutual Evaluation cycle. Regulators are expected to continue strengthening due diligence, reporting, governance, and enforcement standards.
The AML/CTF Amendment Bill may also bring stricter rules on beneficial ownership disclosure, reporting obligations, and regulatory powers. In addition, further updates to FIC guidance are expected as authorities continue refining the country’s AML compliance framework.
#Conclusion
South Africa’s financial regulatory environment is moving toward stronger supervision, greater transparency, and more consistent enforcement. For financial services providers, CASPs, and other accountable institutions, compliance can no longer be treated as a formal requirement only.
Businesses operating in South Africa should review their AML frameworks, beneficial ownership records, RMCPs, reporting processes, and technology governance to stay aligned with the changing regulatory landscape.
As South Africa AML regulations continue to evolve in 2026, early preparation will be essential for firms that want to remain compliant and avoid regulatory risk.