Regulation

The Financial Action Task Force (FATF), an international financial crimes watchdog, has removed South Africa, Nigeria, Mozambique, and Burkina Faso from its “grey list.” This decision follows successful on-site visits and positive progress in addressing identified shortcomings within the agreed timeframes.

Grey List and Black List Overview

The FATF maintains both “grey” and “black” lists to identify countries that do not meet its standards. Countries on the grey list are those with strategic deficiencies in their anti-money laundering regimes but are actively working with the organization to address these issues.

Improvements in Specific Countries

• South Africa: Enhanced tools for detecting money laundering and terrorist financing.
• Nigeria: Improved coordination between agencies.
• Mozambique: Increased financial intelligence sharing.
• Burkina Faso: Enhanced oversight of financial institutions.

South Africa and Nigeria were added to the grey list in 2023, Mozambique in 2022, and Burkina Faso in 2021. The removal from the list means these countries will no longer be subject to increased monitoring by the FATF.

Statements from Officials

Nigerian President Bola Ahmed Tinubu described the delisting as a significant milestone in Nigeria’s pursuit of economic reform and global credibility. Nigeria’s Financial Intelligence Unit noted its dedicated efforts through a 19-point action plan. Edward Kieswetter, Commissioner of the South African Revenue Service, emphasized that the removal from the grey list is a milestone toward building a robust financial ecosystem.

Although leaders in Mozambique and Burkina Faso did not immediately comment, Mozambican officials had previously expressed optimism about their removal from the list. Finance Minister Carla Louveira stated that Mozambique aims to significantly improve its anti-money laundering and terrorist financing measures by the FATF’s next assessment in 2030.

Global Compliance with FATF Standards

Over 200 countries globally have committed to adhering to the FATF standards, which include combating money laundering, terrorist financing, and weapons financing. The FATF’s black or “high-risk” list currently includes Iran, Myanmar, and North Korea.