Nigeria Exits Global Money-Laundering Watchlist
Nigeria has officially been removed from the Financial Action Task Force (FATF) grey list, marking a major milestone in the country’s ongoing fight against money laundering and terrorism financing.
The development was confirmed during the FATF plenary meeting held in Paris, France, where member nations reviewed the progress of countries previously placed under increased monitoring.
FATF Commends Nigeria’s Reforms
The Financial Action Task Force (FATF) — the global watchdog for anti-money laundering (AML) and counter-terrorism financing (CTF) — commended Nigeria for demonstrating significant progress in strengthening its legal, regulatory, and institutional frameworks to combat illicit financial flows.
According to the FATF report, Nigeria successfully addressed the strategic deficiencies identified in earlier assessments, including improved risk-based supervision, transparency of beneficial ownership, and cross-border financial cooperation.
“Nigeria has made substantial progress in improving its AML/CFT regime and will no longer be subject to the FATF’s increased monitoring process,” the statement read.
FG Reacts: Milestone for Economic Stability
Reacting to the development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Nigeria’s removal from the list was a “vote of confidence” in the country’s financial integrity and governance reforms.
“This is a testament to President Bola Tinubu’s economic reforms and commitment to transparency. It will boost investor confidence, strengthen the naira, and improve Nigeria’s standing in the global financial system,” Edun said.
He added that the exit would make it easier for Nigerian banks and businesses to access international financial markets, reducing compliance bottlenecks and transaction delays.
EFCC, CBN, and NFIU Credited
The achievement followed months of coordinated efforts by Nigeria’s key financial regulators, including the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN), and the Nigerian Financial Intelligence Unit (NFIU).
The agencies implemented stricter customer due diligence, suspicious transaction reporting, and cross-border monitoring systems to meet FATF compliance standards.
The EFCC Chairman, Ola Olukoyede, described the announcement as “a victory for institutional reform and global cooperation.”
“Nigeria’s delisting reflects the seriousness of our enforcement actions and the strengthening of our financial intelligence capabilities,” he said.
Economic and Diplomatic Implications
Analysts say the FATF decision will have far-reaching economic and diplomatic benefits, potentially increasing foreign direct investment, ease of doing business, and international banking relations.
“This move reopens doors for international partnerships and lowers risk ratings for Nigerian financial institutions,” said Dr. Zainab Yusuf, a financial governance expert.
However, experts cautioned that sustaining compliance will require continued vigilance and inter-agency collaboration to prevent a relapse.
Background
Nigeria was placed on the FATF grey list in 2021, alongside countries with strategic deficiencies in combating money laundering and terrorism financing.
The grey listing subjected Nigeria to enhanced due diligence by international financial institutions, slowing down cross-border transactions and affecting investor confidence.
With its removal, Nigeria joins other African nations like Mauritius and Botswana, which successfully exited the list after implementing comprehensive reforms.
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