October 2025 has been a notable month for South Africa’s financial services sector, with several developments shaping the regulatory and corporate landscape. The country’s long-awaited removal from the FATF grey list and the introduction of the King V governance framework reflect a concerted effort toward stronger regulatory compliance, transparent governance, and sustainable business practices. In this month’s Legislative and Industry Insights, we highlight some of the key regulatory updates and industry developments affecting South Africa’s financial services sector.
South Africa exits FATF grey list: A step toward financial integrity
In a significant milestone, South Africa has officially been removed from the Financial Action Task Force (FATF) grey list after addressing all 22 identified deficiencies in its anti-money laundering (AML), counter-terrorist financing (CFT), and counter proliferation financing (CPF) frameworks.
The Financial Intelligence Centre hailed the decision as a sign of restored institutional integrity. National Treasury and the South African Revenue Service (SARS) echoed this sentiment, emphasizing that delisting marks the beginning of sustained vigilance rather than the end of reform.
Regulators have pledged to maintain and enhance AML/CFT/CPF measures. Legal experts expect continued regulatory scrutiny, particularly around compliance enforcement and effective prosecution. The overall message: South Africa’s financial system must remain proactive to prevent regression.
King V launched in South Africa
On 31 October 2025, the Institute of Directors in South Africa (IoDSA) and the King Committee officially released King V, the fifth iteration of South Africa’s corporate governance framework, comprising the King V Code on Corporate Governance for South Africa, King V Foundational Concepts, King V Glossary and King V Disclosure Framework. Replacing King IV, this updated Code will apply to financial years commencing on or after 1 January 2026.
Arriving nearly a decade after its predecessor, King V reflects the significant shifts in the governance landscape over recent years. Organisations now operate in an increasingly complex environment, marked by heightened stakeholder expectations and evolving regulatory demands. In response, King V introduces several key enhancements:
- Alignment with legislative and global developments.
- Simplified structure and language
- Standardised disclosure framework
- Refined principles and practices
With these updates, King V positions itself as a forward-thinking governance tool, equipping organisations to navigate today’s challenges.
Information regulator updates:
Judgment has been reserved by the North Gauteng High Court in the legal dispute between the Information Regulator and the Department of Basic Education, which centres on whether the publication of matric results violates learners’ privacy rights under the Protection of Personal Information Act (POPIA).
The Regulator argues that the DBE’s method of publishing results violates the Protection of Personal Information Act (POPIA) and had previously issued an enforcement notice against the Department of Basic Education in November 2024. After an urgent application was dismissed in January 2025, the matter was heard over two days in October 2025.
The Regulator seeks clarity on whether the DBE’s practices align with POPIA, emphasizing the importance of protecting learners' personal information. Judgment will be delivered after the court considers all submissions.
Industry news
ASSA launches Climate Change Index
The Actuarial Society of South Africa (ASSA), in partnership with Old Mutual Insure, has launched the ASSA Climate Change Index to help various sectors manage climate-related risks. The ASSA Climate Change Index is a data-driven tool designed to track the frequency and intensity of extreme weather events, such as floods, droughts, and heatwaves, against a 30-year historical baseline. According to a medial release by the ASSA, the index was developed by a multi-disciplinary team of actuaries and meteorologists, the index provides quarterly updates and is freely accessible to the public. It aims to support insurers, policymakers, and researchers in understanding climate trends and their financial implications. The initiative marks a significant step forward in integrating actuarial science with environmental monitoring to inform decision-making across sectors.
Conclusion
October has been a turning point for South Africa’s financial services sector. The country’s removal from the FATF grey list is more than a regulatory win, it’s a signal to global markets that South Africa is serious about financial integrity and reform. The launch of King V brings corporate governance into sharper focus, offering a modern framework that reflects today’s business realities. Meanwhile, developments like the introduction of the ASSA Climate Index show that the sector is not only responding to compliance demands but also embracing innovation and accountability.
