The African Transformation Movement (ATM) has welcomed the European Union’s decision to remove South Africa from its list of “High-Risk Third Country Jurisdictions,” describing the move as a significant step towards restoring confidence in the country’s financial systems.
The EU delisting follows reforms undertaken by South Africa to strengthen its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. The ATM said the decision reflects the “tireless efforts” of the National Treasury and other stakeholders who have worked to address deficiencies identified by international watchdogs.
However, the party cautioned that while the delisting is a positive development, it should not create a false sense of security. According to the ATM, serious challenges remain in the prevention, detection and prosecution of financial crimes, which continue to threaten both national security and economic stability.
In a statement, ATM National Spokesperson Zama Ntshona highlighted concerns raised by the Treasury itself, particularly around weaknesses in law enforcement capacity and regulatory oversight. One of the most alarming issues cited was the widespread use of unregistered SIM cards to facilitate illicit financial flows.
“Nearly 57,000 unregistered SIM cards have reportedly been used to transfer more than R6 billion to countries such as Kenya and Somalia, with a significant portion suspected to be linked to terrorism financing,” Ntshona said. “This points to a serious failure in regulation and enforcement within the telecommunications sector.”
The ATM further raised concerns about the spaza shop sector, which it said has become vulnerable to illicit financial activity. The party noted that foreign nationals, particularly from Ethiopia and Somalia, dominate the sector, while South Africans account for only about 26 percent of spaza shop ownership.
According to the ATM, this imbalance not only undermines local entrepreneurship but also creates opportunities for money laundering and unmonitored cross-border financial flows, especially when combined with weak oversight of cash-based businesses.
The party has called on the government to use the EU delisting as a catalyst for more aggressive action against financial crime. Among its key demands is the strengthening of investigative capacity within law enforcement agencies, including better resourcing to track and prosecute crimes linked to unregistered SIM cards.
The ATM also wants tighter regulatory frameworks governing telecommunications, particularly the enforcement of SIM card registration laws, as well as improved cooperation with international partners to combat money laundering and terrorism financing.
In addition, the party has urged the launch of public awareness campaigns to educate citizens about the risks posed by financial crimes and the dangers of using unregistered SIM cards. It also called for decisive action to root out corruption, especially within sectors that enable illicit financial activity.
While praising the EU decision, Ntshona stressed that much work still lies ahead. “As long as unregistered SIM cards remain in circulation and key sectors of the micro economy remain poorly regulated, the integrity of our financial system will remain under threat,” she said.
The ATM said it would continue to advocate for stronger measures to safeguard South Africa’s financial integrity and protect the country from criminal and terrorist networks.
