FATF
Picnews
The Financial Action Task Force (FATF) has removed Nigeria from its grey list of countries with deficiencies in anti-money laundering and counter-terrorist financing frameworks. This decision follows Nigeria’s successful completion of a 19-point action plan to strengthen its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework. Nigeria’s removal from the grey list is expected to boost investor confidence, reinforce confidence in the country’s economy and financial systems, and signal to investors and global partners that Nigeria’s institutions are strong, transparent, and internationally trusted.
The Nigerian government had implemented key reforms, including the enactment of the Money Laundering (Prevention and Prohibition) Act, 2022, and the Terrorism (Prevention and Prohibition) Act, 2022. The government also operationalized the beneficial ownership register of companies and legal entities, improving corporate transparency and accountability. Additionally, Nigeria enhanced supervision of Designated Non-Financial Businesses and Professions (DNFBPs), strengthened supervisory and preventive measures by public and private sector authorities to prevent abuse of Nigeria’s financial system, and increased international cooperation and cross-border intelligence exchange with regional and global partners.
The removal from the grey list is expected to ease cross-border transactions, improve capital flows, including foreign direct investment, and strengthen the foundations for rapid and sustainable economic growth and job creation. It is also expected to lower funding costs and facilitate smoother cross-border payments, potentially unlocking new capital inflows and boosting economic growth. The development is a significant milestone for Nigeria, demonstrating the country’s commitment to meeting global standards and improving its financial systems .
