Paris, France / Lagos, Nigeria / Pretoria, South Africa — In a landmark decision for the African continent, the Financial Action Task Force (FATF) has officially removed South Africa, Nigeria, Mozambique, and Burkina Faso from its global “grey list” after finding substantial progress in their efforts to combat money laundering and terrorist financing.

The FATF, a Paris-based international watchdog, made the announcement on Friday, citing “successful on-site visits” that demonstrated “positive progress and effective reforms” within each country’s financial regulatory systems.

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A Positive Turn for Africa’s Financial Reputation

The FATF “grey list” includes countries with “strategic deficiencies” in their anti-money laundering (AML) and counter-terrorist financing (CTF) regimes but that are working with the organization to address them.

Elisa de Anda Madrazo, FATF President, praised the removal as a “positive story for the continent of Africa,” noting that the four nations had shown “commitment, transparency, and determination” to strengthen their compliance systems.

She highlighted each country’s achievements:

• South Africa enhanced its financial intelligence and improved cooperation among regulators and law enforcement.
• Nigeria implemented stronger inter-agency coordination and adopted an ambitious 19-point action plan to meet FATF standards.
• Mozambique improved information sharing and bolstered financial oversight mechanisms.
• Burkina Faso strengthened institutional supervision to reduce risks of money laundering through informal banking networks.

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Leaders Hail ‘Milestone’ for Economic Reform

Officials from all four countries hailed the FATF decision as a major milestone in their economic development and governance reform agendas.

Nigerian President Bola Ahmed Tinubu described the delisting as a “significant achievement in Nigeria’s journey toward economic transparency, institutional integrity, and global credibility.”

The Nigerian Financial Intelligence Unit (NFIU) confirmed that it had “worked resolutely through its reform plan,” improving monitoring tools and compliance standards in both public and private sectors.

In South Africa, Edward Kieswetter, commissioner of the South African Revenue Service (SARS), welcomed the decision but warned that “removing the grey-list designation is not the finish line but a milestone” toward creating a more resilient financial system.

Mozambique and Burkina Faso also expressed optimism earlier this year. Finance Minister Carla Louveira of Mozambique stated in July that her government aimed not only to exit the grey list but also to transform the country’s financial transparency landscape by 2030.

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From Risk to Reform: The FATF Grey List Journey

• Burkina Faso was first placed on the FATF grey list in 2021.
• Mozambique followed in 2022, after rising concerns over terrorist financing linked to insurgencies in Cabo Delgado.
• South Africa and Nigeria, Africa’s two largest economies, were added in 2023 amid mounting concerns over weak enforcement of anti-money laundering laws.

Their removal signals that all four countries now meet global AML/CTF benchmarks and are no longer subject to heightened FATF monitoring.

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FATF Oversight: Who Remains on the High-Risk List

More than 200 jurisdictions worldwide have committed to FATF standards designed to prevent money laundering, terrorism financing, and weapons proliferation.

While the FATF’s “grey list” identifies countries under increased monitoring, its “black list” — or high-risk jurisdiction list — includes Iran, Myanmar, and North Korea, which face international countermeasures for failing to cooperate with global financial norms.

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Boost to Investment Confidence and Financial Credibility

Experts say removal from the FATF grey list can improve investor confidence, strengthen foreign relations, and reduce transaction risks for banks and multinational firms operating in the delisted countries.

Analysts note that Nigeria and South Africa, in particular, could see a surge in foreign direct investment (FDI) and smoother international trade transactions following the FATF’s decision.

As FATF President Madrazo summarized:

“The progress of these African nations proves that commitment and reform can drive financial integrity and strengthen the global economy.”