Nigeria and South Africa have officially been removed from the Financial Action Task Force’s (FATF) global money-laundering watchlist, marking a significant milestone in their financial reform journeys. The announcement came during the FATF plenary meeting held in Paris in October 2025, where both countries were recognized for substantial progress in strengthening their anti-money laundering and counter-terrorist financing frameworks. Their removal from the “grey list” signals renewed international confidence in the integrity of their financial systems and opens the door to improved global investment and economic cooperation.
Nigeria, which was added to the watchlist in February 2023, undertook sweeping reforms led by the Nigerian Financial Intelligence Unit (NFIU). These reforms included tightening regulatory oversight, enhancing inter-agency coordination, and improving the legal framework governing financial transactions. President Bola Tinubu welcomed the delisting as a validation of Nigeria’s commitment to institutional integrity and economic transformation. The move is expected to ease international transactions, attract foreign investment, and strengthen Nigeria’s position in global financial markets.
South Africa also made notable strides in addressing FATF concerns, implementing robust systems to detect and prevent illicit financial flows. The country improved its compliance with FATF standards by enhancing transparency, refining its risk assessment mechanisms, and bolstering enforcement capabilities. These efforts have earned praise from global financial observers and are seen as a testament to South Africa’s dedication to reform and accountability. The delisting is anticipated to boost investor confidence and facilitate smoother engagement with international financial institutions.
The FATF’s decision to remove Nigeria and South Africa from the grey list is widely viewed as a vote of confidence in Africa’s largest economies. It reflects their commitment to aligning with global financial norms and combating financial crime. While continued vigilance and reform are necessary to maintain progress, this development marks a turning point in regional financial governance. It sets a precedent for other nations striving to enhance transparency and build resilient, trustworthy financial systems capable of supporting sustainable growth and international partnerships.