However, despite a robust regulatory framework, the country has faced challenges in fully aligning with global anti-money laundering (AML) and counter-terrorist financing standards, resulting in its inclusion on the FATF grey list in 2023, according to SymphonyAI.

The country’s legal framework, led by the Financial Intelligence Centre Act (FICA) and supported by other legislation such as the Prevention of Organised Crime Act (POCA), provides a strong foundation.

Multiple regulatory bodies, including the Financial Intelligence Centre (FIC), South African Reserve Bank (SARB), and the Financial Sector Conduct Authority (FSCA), ensure comprehensive oversight.

However, evolving financial crime threats and increasingly complex regulatory demands require agile and innovative responses.

Leading banks like Absa have embraced AI-powered AML solutions to improve detection capabilities, reduce false positive alerts by 77%, and uncover previously unidentified risk patterns. Such technological advances transform compliance from a costly obligation into a strategic advantage.

While AI is a powerful tool, successful compliance also depends on the human element. Financial institutions invest in customer education to empower fraud prevention and actively share intelligence with agencies like the FIC and the South African Banking Risk Information Centre (SABRIC). Upskilling compliance teams and maintaining frictionless customer experiences remain key priorities.

Non-compliance penalties in South Africa are severe, with fines reaching up to ZAR100m (~US$5.2m) and possible imprisonment. As South Africa prepares to exit the FATF grey list by October 2025, banks have a unique opportunity to lead the continent in financial crime prevention by harnessing advanced AI and collaborative frameworks.

Read the full blog from SymphonyAI here.

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