Nigeria, South Africa To Exit Global Money-Laundering Watchlist This Month

Nigeria and South Africa are on track to be removed from the Financial Action Task Force’s (FATF) grey list by October, a move expected to ease cross-border financial flows and boost investor confidence.
Bloomberg reported on Tuesday that assessors from the Paris-based FATF, who conducted on-site visits in recent weeks, confirmed both countries had made significant progress in strengthening their anti-money laundering and counter-terrorism financing regimes.
The FATF placed Nigeria and South Africa under increased monitoring in February 2023 over weaknesses in tackling illicit financial flows. A final decision on their removal is scheduled for October 24 at the FATF plenary in Paris, according to the report. Burkina Faso and Mozambique are also being considered for delisting.
Commenting on the development, Lauren van Biljon, senior portfolio manager at Allspring Global Investments, said exiting the grey list would confirm that reforms introduced since last year are taking hold. While she noted that the immediate market impact may be modest, “it could provide a short-term lift to asset prices.”
Countries on the FATF grey list face tighter scrutiny from global financial institutions, which often results in slower transactions and higher compliance costs.
Nigeria has stepped up reforms in recent months. On June 14, the Nigerian Financial Intelligence Unit (NFIU) said the country had recorded a breakthrough in its anti-money laundering and terrorism financing framework, earning FATF approval for an on-site assessment. In July, the federal government disclosed that more than 730 individuals had been convicted for terrorism-related offences.