Africa’s FATF Comeback: What Nigeria and South Africa’s Grey List Exit Means for the Continent
A milestone for Africa’s financial credibility
Sub-Saharan Africa’s two largest economies — Nigeria and South Africa — have been officially removed from the Financial Action Task Force (FATF) Grey List.
They were joined by Mozambique and Burkina Faso, marking one of the most sweeping regional delistings FATF has ever announced.
This is more than a procedural victory. It’s a symbolic and practical shift in how the world sees African finance — from risk to reliability, from scrutiny to trust.
Why they were on the list
The FATF grey list identifies countries whose anti-money-laundering and counter-terrorism-financing (AML/CFT) systems have “strategic deficiencies” requiring enhanced monitoring.
For Nigeria, FATF’s 2021 evaluation found strong laws but weak follow-through — gaps in inter-agency coordination, slow progress on beneficial-ownership transparency, and inconsistent sanctions implementation.
For South Africa, the challenge was institutional: years of “state capture” had eroded enforcement capacity, leaving too few prosecutions for complex financial crimes and patchy beneficial-ownership data.
Being on the grey list carries real consequences. An IMF study found grey-listed countries suffer an average 7–8 percent decline in capital inflows as investors and correspondent banks treat them as higher-risk jurisdictions.
How they earned their way back
Both nations responded not with denial but with overhaul.
Nigeria’s reform push
Nigeria treated the grey-listing as “a call to action,” in the words of presidential spokesperson Bayo Onanuga.
The government enacted three cornerstone laws — the Money Laundering (Prevention and Prohibition) Act 2022, the Terrorism (Prevention and Prohibition) Act 2022, and the Proceeds of Crime (Recovery and Management) Act 2022.
It launched a Beneficial Ownership Register, established the National Sanctions Committee, and empowered the Nigerian Financial Intelligence Unit (NFIU) to coordinate reforms.
The NFIU said it had “worked resolutely through a 19-point action plan” to demonstrate measurable improvement — progress that FATF verified during its August 2025 on-site review.
President Bola Ahmed Tinubu called the delisting a “major milestone in Nigeria’s journey towards economic reform, institutional integrity and global credibility.”
South Africa’s turnaround
South Africa’s roadmap was equally ambitious: amending the Financial Intelligence Centre Act, tightening supervision of DNFBPs, modernising beneficial-ownership disclosure, and improving asset-recovery outcomes.
FATF confirmed that the country had addressed all 22 deficiencies identified in its 2023 action plan — a sharp reversal from the governance doubts that once shadowed its financial institutions.
What delisting means — from global markets to local impact
For capital flows:
Restored confidence can reduce borrowing costs, reopen correspondent-bank relationships, and attract portfolio and direct investment.
Multilateral lenders and private investors now face fewer “heightened due-diligence” barriers when engaging with African institutions.
As trust improves, so does liquidity — unlocking growth in sectors starved of affordable finance.
For people on the ground:
When risk premiums fall, credit gets cheaper and remittances move faster.
Trade finance becomes more accessible for SMEs, and legitimate cross-border payments face less friction.
For consumers, that can mean more competitive lending rates and broader access to digital financial services.
And for governments, stronger AML frameworks mean less corruption leakage — funds redirected from illicit flows to real development.
A regional signal
With Nigeria, South Africa, Mozambique, and Burkina Faso now off the list, the momentum has shifted.
The FATF’s message is clear: reform works. Transparency, enforcement, and collaboration can restore credibility — even in jurisdictions once labelled high-risk.
That puts a spotlight on the region’s next contenders.
Kenya, which remains under increased monitoring, has already intensified its AML efforts and may be next in line to demonstrate measurable progress.
The road ahead: sustaining the gains
Delisting is not a finish line but a maintenance plan. FATF’s next evaluations will test whether reforms translate into enduring institutional culture — continuous training, updated data, and technology that keeps pace with risk.
For banks, fintechs, and Designated Non-Financial Businesses (like real estate, accounting and law firms), the real challenge is implementation: daily screening, timely reporting, and seamless collaboration between regulators and industry.
Anqa’s view: accessible compliance is the new infrastructure
At ANQA COMPLIANCE, we believe this milestone reflects a deeper truth — that financial integrity is infrastructure.
The same way roads and power lines enable commerce, robust AML systems enable trust, investment, and growth.
Our platform helps smaller institutions — from microfinance banks to fintech startups — meet the same global standards now recognised by FATF, without the cost or complexity of legacy systems.
Africa’s delisting moment shows what’s possible when determination meets accessibility.
The question now is: who’s next?
Sources:
Reuters – South Africa, Nigeria among African countries dropped from FATF Grey List
Financial Times – South Africa and Nigeria removed from money-laundering “grey list”
Premium Times Nigeria – Why FATF placed Nigeria on Grey List, how the country won its way back
Premium Times Nigeria – Grey List Exit: FATF President congratulates Nigeria