Nigeria, South Africa Removed From Global Dirty-Money List
The Financial Action Task Force (FATF) has removed Nigeria, South Africa, Mozambique, and Burkina Faso from its dirty-money list of countries under increased monitoring for illicit money flows.
The Financial Action Task Force has removed Nigeria, South Africa, Mozambique and Burkina Faso from its grey list of countries subject to increased monitoring for money laundering and terrorist financing risks.
The Paris-based watchdog’s decision represents a significant milestone for two of Africa’s largest economies as they work to restore investor confidence, reduce the cost of capital and strengthen financial system credibility.
The move follows earlier reform progress highlighted at the FATF’s June plenary, and aligns with a recent report by Business Insider Africa indicating that Nigeria and South Africa were on track to exit the grey list this month.
By closing gaps in regulatory oversight and enhancing enforcement against illicit financial flows, the four nations have now met the FATF’s requirements for delisting, boosting their standing among global financial institutions and capital markets.
Nigeria and South Africa were added to the list in February 2023 while Mozambique was included in October 2022 and Burkina Faso initially in February 2021.
At its June plenary session, the Financial Action Task Force commended the four countries for strengthening their systems to combat illicit financial flows.
Bloomberg reports that Oxford Economics senior economist Jee A Van Der Linde said South Africa’s exit from the list should reinforce market optimism and signal progress on government reforms.
He noted that this improvement in institutional strength could lift sentiment, reduce bond yields and lower debt servicing costs even if it does not significantly change the country’s growth outlook.
In Nigeria, Finance Minister Wale Edun told Bloomberg that the delisting reinforces confidence in the economy and the integrity of monetary and financial systems.
“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,” Edun noted.
According to him, the move will ease cross border transactions and improve capital flows including foreign direct investment while strengthening the foundations for rapid and sustainable economic growth and job creation.
Although the delisting does not resolve deeper structural issues in either country, it sends a strong message that reform momentum is taking hold.
As two of the continent’s largest economies work to attract investment, enhance market confidence and deepen financial integration, the removal of this reputational hurdle represents a timely boost to their economic outlook.
