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The Financial Action Task Force (FATF)—the global watchdog based in Paris—has officially removed Nigeria, South Africa, Mozambique, and Burkina Faso from its grey list of countries subjected to heightened monitoring for risks related to money laundering and terrorist financing.
This decision marks a significant achievement, particularly for Nigeria and South Africa, two of Africa’s largest economies, as they strive to rebuild investor confidence, reduce borrowing costs, and enhance the credibility of their financial systems.
The delisting follows sustained reform efforts that had been recognized during the FATF’s June 2025 plenary session. Each of the four nations has made notable progress in strengthening financial oversight, tightening regulatory frameworks, and improving enforcement mechanisms to combat illicit financial activities. Their compliance with FATF’s recommendations now elevates their standing in global financial markets and among international investors.
Nigeria and South Africa had been placed on the FATF grey list in February 2023, Mozambique in October 2022, and Burkina Faso in February 2021. At its June plenary, the FATF commended all four countries for implementing comprehensive measures to curb illicit financial flows and strengthen institutional resilience.
Jee A. Van Der Linde, a senior economist at Oxford Economics, commented that South Africa’s delisting should boost market optimism and reflect tangible progress in government reform efforts. He added that stronger institutional integrity could help lower bond yields, reduce debt servicing costs, and improve overall investor sentiment, even if it doesn’t immediately transform the nation’s growth trajectory.
In Nigeria, Finance Minister Wale Edun described the development as a vote of confidence in the country’s economic management and the integrity of its financial and monetary systems. He emphasized that the delisting will facilitate smoother cross-border transactions, attract greater foreign direct investment (FDI), and lay a stronger foundation for sustainable economic expansion and job creation.
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While removal from the FATF’s grey list does not by itself resolve deeper structural or governance issues, it nonetheless signals that reform momentum is gaining traction. For Nigeria and South Africa—key players in Africa’s economic landscape—the decision comes as a timely boost, helping them enhance investor confidence, strengthen financial credibility, and accelerate economic recovery. As these economies continue to pursue broader reforms and deepen financial integration within the region, the FATF’s decision represents a critical turning point, reaffirming their commitment to global standards of transparency, accountability, and financial integrity.
