SOUTH AFRICA — In a decisive move to tackle illicit activities and bolster institutional integrity, South Africa’s crime and corruption funding has been significantly increased through the government’s latest Medium-Term Budget Policy Statement (MTBPS).
Delivering the revised economic outlook and adjusted expenditure estimates, Finance Minister Enoch Godongwana announced a comprehensive financial injection aimed at overhauling law enforcement and the justice system. For the upcoming year, the South African Police Service (SAPS) will receive an R810 million recapitalisation specifically earmarked for its vehicle fleet. Furthermore, an additional R2.2 billion will be allocated over the medium term to reinforce the independence of the judiciary.
Highlighting the economic imperative behind these budgetary adjustments, Godongwana noted the severe macroeconomic consequences of illicit activities.
“Crime and corruption weaken governance and hold back the economy. They rob the fiscus of funds intended for service delivery and raise the cost of doing business,” the Minister stated during his address on Wednesday.
Border Security and Immigration Overhaul
The government’s anti-corruption and security strategy extends beyond traditional policing and the courts. Building on current allocations to the Border Management Authority, the state is actively scaling up its cadre of labour inspectors.
Godongwana also revealed that the executive is evaluating further legislative and operational measures to fortify the border inspectorate and immigration officers, aiming to decisively address ongoing challenges related to illegal migration.
FATF Evaluation and Global Compliance
A central pillar of the government’s strategy is maintaining strict alignment with international financial standards. Godongwana confirmed that the Financial Action Task Force’s (FATF) 18-month Mutual Evaluation process is currently underway.
This rigorous assessment tests both technical compliance and the practical effectiveness of the nation’s legal frameworks. Specifically, it measures real-world outcomes through the volume and success rate of investigations, prosecutions, and asset forfeitures.
“We are striving to achieve technical compliance and fully implement the FATF recommendations. These efforts have been supported by investments in fighting crime and corruption,” Godongwana explained.
The FATF operates as a premier intergovernmental watchdog dedicated to safeguarding the global financial system. By establishing and promoting international standards, the body works to neutralize threats such as money laundering, terrorist financing, and proliferation financing.
Successful Removal from Global Greylists
The renewed funding and compliance efforts are building on a series of major diplomatic and financial victories for the country. Following a sustained period of regulatory reform, South Africa was officially removed from the European Union’s list of high-risk third-country jurisdictions in 2026.
This milestone followed a highly successful October the previous year. Effective 13 October 2025, the nation was simultaneously removed from both the FATF grey list—formally designated as jurisdictions under increased monitoring—and the United Kingdom’s high-risk countries list for money laundering and terrorist financing.
