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National Treasury has said that the earliest date that South Africa can exit the Financial Action Task Force's (FATF) grey list is June 2025.
This is four months later that the date of February 2025 eyed by some in government.
SA was added to the index, which lists countries that are not compliant with global anti-money laundering and terrorist financing standards, at the start of 2023.
Last week the FATF said SA had addressed only five of 22 "action items" it needs to tick off before it can exit the list.
Treasury has now said that even if SA addresses all 22 items by February next year, the earliest it will be able to leave the list is June 2025.
This is because the FATF will first need to schedule on onsite visit to check the country’s compliance. That visit will likely take place in April or May 2025.
The FATF will then only be able to vote on removing SA from the list at its plenary meeting in June 2025. But even this date may be unrealistic.
"National Treasury notes that whilst South Africa is on track to address all the outstanding action items, it remains a tough challenge to address all 17 of the remaining action items by February 2025," it said.
"All relevant agencies and authorities will need to continue to demonstrate significant improvements, and also for such improvements are being sustained," it added.
One of the key challenges facing SA will be to demonstrate a "sustained increase in investigations and prosecutions of serious and complex money laundering".
SA has been given until January 2025 to show it can do so. The task force wants to see that SA can nab "professional money laundering networks/enablers", which authorities have been struggling to do.
