0
0
Nigeria and South Africa could be removed from the Financial Action Task Force’s (FATF) grey list as early as next month, Bloomberg reports, citing sources familiar with the matter.
The Paris-based watchdog, which monitors money laundering and terrorism financing, placed both countries under increased scrutiny in February 2023 due to gaps in curbing illicit financial flows. Recent FATF assessors’ visits reportedly confirmed significant progress, clearing the way for removal. A final decision is expected on October 24 at the FATF plenary in Paris. Burkina Faso and Mozambique are also being considered, pending confirmation from FATF’s 40 member states.
Lauren van Biljon, senior portfolio manager at Allspring Global Investments, said removal from the grey list would indicate that reforms introduced since last year are yielding results. While she expects only a modest market impact, she noted it could provide a short-term boost to asset prices.
Countries on FATF’s grey list face stricter oversight of their financial systems and reduced foreign investment inflows. Nigeria has ramped up compliance efforts, with the Nigerian Financial Intelligence Unit (NFIU) announcing in June that FATF had approved an on-site evaluation following progress on anti-money laundering and counter-terrorism financing measures.
In July, the federal government reported more than 730 convictions for terrorism-related offences, citing them as evidence of stronger enforcement. The October plenary will determine whether Nigeria and South Africa can finally exit the grey list and restore greater investor confidence in their financial systems.
