Nigeria and South Africa could be removed from the Financial Action Task Force (FATF) grey list as early as October 24, a development expected to boost investor confidence in Africa’s two largest economies.
Gatekeepers News reports that the FATF, a Paris-based watchdog that monitors global efforts against money laundering and terrorist financing, placed both countries on the grey list in February 2023 after identifying gaps in their systems for tackling illicit financial flows.
Recent on-site inspections in Nigeria, South Africa, Burkina Faso, and Mozambique revealed significant improvements, paving the way for possible delisting during FATF’s upcoming plenary session in Paris.
A final decision will require consensus among the body’s 39 members, which include the United States, United Kingdom, European Commission, China, Japan, and India. Analysts believe the removal would send a strong message to international markets.
“It would be confirmation that the reforms and measures put in place in the wake of the grey listing are both significant and sticky,” said Lauren van Biljon, Senior Portfolio Manager at Allspring Global Investments UK Ltd.
