Nigeria has been removed from the Financial Action Task Force (FATF) grey list, ending over two years of scrutiny for money laundering and terrorist financing risks. The delisting follows Central Bank of Nigeria-led reforms implementing anti-money laundering measures. This step restores confidence in the country's financial system and eases international transactions.
Nigeria joined the FATF grey list in February 2023 alongside South Africa, facing heightened global scrutiny on financial transactions due to perceived deficiencies in countering money laundering, terrorist financing, and proliferation risks. The Paris-based FATF, a 40-member body supported by the World Bank and IMF, sets standards to combat illicit funds from crimes like drug trafficking and cyber fraud. Other nations on the list at various times included Mozambique in October 2022 and Burkina Faso in February 2021.
Upon taking office, Central Bank of Nigeria Governor Olayemi Cardoso initiated reforms to address these issues, including enhanced oversight of bureau de change operations and deposit money banks. These efforts ensured compliance with the FATF's 40 recommendations, such as customer identity verification, identifying beneficial owners of assets, understanding transaction purposes, and ongoing scrutiny of banking relationships.
The FATF's decision to remove Nigeria, along with South Africa, Mozambique, and Burkina Faso, highlights progress in closing regulatory gaps. As of February 2025, the FATF had reviewed 139 countries, identifying 114 with weaknesses; 86 have since been delisted after reforms. FATF President Elisa de Anda Madrazo praised the political will under President Bola Tinubu's administration, stating, “Nigeria has demonstrated a strong political commitment to fighting financial crimes. However, it is not only the commitment that matters, but also the change and the concrete measures we have seen put in place.”
Stakeholders welcomed the exit. Dr. Uju Ogubunka, President of the Bank Customers Association of Nigeria, said, “It opens new approaches and opportunities in Nigerian banks and customers’ dealings with international financial institutions. It shows that Nigeria’s financial system is safe for payments and other transactions. It is worth celebrating by all Nigerians.” Timothy Melaye of GIABA noted the government's unwavering commitment to AML/CFT measures, emphasizing threats from sophisticated, transnational crimes like trade-based money laundering.
To sustain gains, the CBN signed a memorandum of understanding with the Bank of Angola at the 2025 IMF/World Bank meetings in Washington, DC, to bolster financial regulations, cross-border supervision, and cybersecurity cooperation.