The intergovernmental Financial Action Task Force (FATF) in October removed South Africa, Nigeria, Mozambique, and Burkina Faso from its “Jurisdictions under Increased Monitoring” list, commonly known as the FATF gray list. The decision followed on-site assessments and noted improvements in the four African countries’ anti-money-laundering (AML) and counter-terror-financing (CFT) frameworks.
FATF President Elisa de Anda Madrazo described the removals as “a positive story for the continent of Africa.” She highlighted:
- South Africa’s use of enhanced tools to detect money laundering and terrorist financing
- Nigeria’s improved inter-agency coordination
- Mozambique’s increased financial intelligence sharing, and
- Burkina Faso’s strengthened oversight of financial institutions.
The four nations’ departure from the gray list is Africa’s largest simultaneous improvement in FATF ratings in a decade. Some jurisdictions continue to face structural challenges in curbing financial crime. Still, delisting signals to global investors that the continent’s banking systems are gaining credibility.
It’s also a sign to global banks, investors, and correspondent-banking networks that systemic risk in these countries is diminishing. As a result, it could potentially unlock cross-border lending, trade finance, and capital flows.
Why Delisting Matters
Remaining on the FATF gray list can have tangible economic consequences. The International Monetary Fund estimates that grey listing reduces foreign capital inflows by roughly 7.6% of GDP. The FATF estimates that globally, 2% to 5% of GDP—around $800 billion to $2 trillion annually—may be laundered through financial systems.
South Africa’s National Treasury said the delisting reflected a year-long effort to address nearly all 22 items on its FATF action plan. “Removing the designation is not a finish line, but a milestone on a long-term journey toward building a robust and resilient financial ecosystem,” noted Edward Kieswetter, commissioner of the South African Revenue Service,
Nigeria’s Financial Intelligence Unit emphasized that the country has “worked resolutely through a 19-point action plan” to satisfy FATF requirements. President Bola Ahmed Tinubu described the decision as “a major milestone in Nigeria’s journey towards economic reform, institutional integrity, and global credibility.”
Despite progress, some African countries, such as Tanzania, Cameroon, and Mozambique, remain under FATF scrutiny. “Getting off the list could make it easier for capital to enter these markets,” says LexisNexis Risk Solutions’ Vincent Gaudel. “Banks will expand correspondent services and trade-finance operations will run more smoothly.”