Nigeria removed from FATF grey list after meeting anti-money laundering, counter-terrorism financing standards

South Africa and Nigeria have been removed from the Financial Action Task Force’s (FATF) grey list, marking a significant milestone in their efforts to strengthen financial integrity and attract foreign investment.

The Paris-based global watchdog announced on Friday that both countries — alongside Mozambique and Burkina Faso — are no longer subject to increased monitoring, following substantial progress in combating money laundering and terrorist financing.

South Africa and Nigeria were added to the list in February 2023, after FATF raised concerns over weaknesses in their financial systems. At the organization’s June plenary, the nations were commended for implementing reforms to curb illicit financial flows.

The decision immediately lifted investor sentiment. The yield on South Africa’s benchmark 10-year bond dropped four basis points to 8.9%, while the rand strengthened 0.6% against the dollar. Economists said the move could reinforce market confidence.

“This development reinforces confidence in our economy and the integrity of our monetary and financial systems, signaling to investors and global partners that Nigeria’s institutions are strong, transparent and internationally trusted,” Finance Minister Wale Edun said in a message sent by text before the announcement. “It will ease cross-border transactions, improve capital flows, including foreign direct investment, and strengthen the foundations for rapid and sustainable economic growth and job creation.”

The FATF’s latest decision also reflects the group’s revamped criteria under President Elisa de Anda Madrazo, which place greater emphasis on monitoring wealthier nations while easing scrutiny on lower-risk developing countries.