The Financial Action Task Force (FATF) has officially removed Nigeria, South Africa, Mozambique, and Burkina Faso from its global grey list, marking a significant milestone for the countries’ financial credibility on the international stage.
The FATF, an intergovernmental body that monitors global efforts to combat money laundering and terrorist financing, announced the decision last Friday in Paris, noting that the four African nations have made “significant progress” in strengthening their financial systems and addressing weaknesses that had previously made them high-risk jurisdictions for illicit financial flows.
The move is widely regarded as a vote of confidence for Africa’s two largest economies, Nigeria and South Africa, whose inclusion on the grey list in recent years had raised concerns among investors, global lenders, and credit rating agencies.
South Africa has today exited the Financial Action Taskforce’s grey list after 32 months having been grey listed in February 2023.
Also delisted from the grey list are Nigeria, Mozambique & Burkina Faso.
Kenya remains on the grey list & has been taking steps to haul itself… pic.twitter.com/uUCcQX3m9Q
— Julians Amboko (@AmbokoJH) October 24, 2025
What It Means to Be Grey-Listed
Countries placed on the FATF grey list are deemed to have strategic deficiencies in monitoring financial activities, including weak enforcement of anti-money-laundering (AML) laws, poor oversight of cross-border transactions, and inadequate transparency in the financial sector.
While not as punitive as blacklisting, grey-listing often results in heightened scrutiny from global banks, more expensive international transactions, and reduced investor confidence.
For nations like Nigeria and South Africa, already grappling with currency instability, inflation, and capital flight, the designation had been a red flag that deterred foreign investment and complicated international financing for local businesses.
Jimoh Ibrahim Hails Tinubu, Akpabio, EFCC, NFIU Over Nigeria’s Removal from FATF Grey List
Senator Jimoh Ibrahim, representing Ondo South Senatorial District, has commended President Bola Ahmed Tinubu, Senate President Godswill Akpabio, and key financial institutions, including… pic.twitter.com/B9SNlkcRcR
— Prime Reporters News (@PrimeReportersn) October 29, 2025
Reforms That Led to Delisting
In Nigeria, authorities introduced stricter AML regulations, increased oversight of digital and mobile money platforms, and improved coordination between the Financial Intelligence Unit and the Economic and Financial Crimes Commission (EFCC).
South Africa, still rebuilding trust after years of corruption scandals and “state capture” controversies, implemented robust financial reforms that empowered regulators to trace suspicious transactions and hold public officials accountable.
According to FATF, these actions “demonstrate substantial effectiveness and political commitment,” though the body cautioned that ongoing vigilance remains essential.
Mozambique and Burkina Faso were also praised for strengthening their monitoring of cross-border cash movements, particularly those linked to armed groups in their regions.
Implications for Citizens and Businesses
For policymakers, delisting is a diplomatic and financial victory — but its real impact will be felt by citizens and entrepreneurs.
In Nigeria, the decision could ease the cost of cross-border transactions, stabilize the naira, and improve access to international funding for small and medium-sized businesses. Restored investor confidence could also boost foreign exchange inflows and attract new investments.
In South Africa, analysts say the move could lead to lower borrowing costs, job creation, and stronger consumer protection. The same mechanisms used to track illicit funds now help safeguard citizens from fraud, corruption, and financial abuse.
In essence, delisting helps restore trust, both domestically and abroad.
There are 40 recommendations that countries must meet to be cleared of the grey list.
Nigeria has been in and out of the grey list since 2001. It’s not about the politics of the PDP or the APC. It’s about our AML/CFT/ CPF framework. From the establishment of the EFCC, the NFIU,… pic.twitter.com/FAXzpw1Mbw
— Dr. Toks ( Anígilájé – El Mero Mero ) (@fimiletoks) October 26, 2025
Regional Ripple Effects
The removal of Nigeria and South Africa, two economic powerhouses, is expected to improve investor perception across Africa. When both countries were on the list, neighbouring economies such as Ghana, Kenya, and Côte d’Ivoire faced increased scrutiny by association.
Now, experts believe the move could trigger renewed interest in fintech, renewable energy, and manufacturing investments across the continent.
However, analysts caution that delisting reflects progress, not perfection. Without sustained oversight, weak governance or corruption could reverse the gains achieved.
Inyathelo hails South Africa’s grey list removal, paving the way for robust NPO fundraising and global re-engagement.
Read our media statement here:https://t.co/X5ufSIHGzh#GreyListing #nonprofit #NPO #NGO pic.twitter.com/WyKEExps9R
— Inyathelo (@Inyathelo) October 29, 2025
What Comes Next
Both Nigeria and South Africa will remain under FATF post-delisting monitoring to ensure their reforms are sustained.
For Nigeria, the ongoing challenge lies in balancing rapid fintech innovation with strict compliance and transparency standards. In South Africa, analysts warn that political interference ahead of elections could undermine recent progress.
For citizens, the hope is that these policy shifts will translate into visible economic benefits, a stronger currency, more jobs, and greater access to finance.
The delisting of the four nations signals a turning point in how global financial institutions view Africa’s governance and commitment to combating financial crimes, a step that could reshape the continent’s economic reputation on the world stage.
