Nigeria and three other African countries are billed to be removed from the Financial Action Task Force’s (FATF) grey list in October.
Bloomberg disclosed this in a report on Tuesday, September 30, stating that the task force’s assessors, who carried out on-site visits in recent weeks, hinted at significant progress.
Pinnacle Daily reports that the Paris-based FATF had, in February 2023, placed Nigeria and South Africa under increased monitoring due to weaknesses in tackling illicit financial flows.
“A final decision is expected on October 24 at the FATF plenary in Paris.
“Burkina Faso and Mozambique are also in line to be removed from the list, pending confirmation by the watchdog’s 40-member countries,” it stated.
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The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, was quoted as saying, “We are excited” about the ramifications of Nigeria being removed from the list.
It would be “a culmination of the remarkable work the government is doing in fulfilling our global obligations and making Nigeria more attractive to investors,” Ajayi said.
According to the report, senior portfolio manager at Allspring Global Investments, Lauren van Biljon, said exiting the grey list would signal that reforms introduced since last year are effective.
She believes the market impact may be modest but could provide a short-term lift to asset prices.
The FATF is an intergovernmental policy-making body that seeks to combat money laundering and terrorism financing.
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Countries in its grey list typically face tougher scrutiny of their financial systems.
Pinnacle Daily can also report that on June 14, the Nigerian Financial Intelligence Unit (NFIU) asserted that the country had recorded a breakthrough in its fight against money laundering and terrorism financing, earning the approval of the FATF for an on-site assessment.
The federal government further disclosed in July that more than 730 individuals have been convicted for terrorism-related offences in Nigeria.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
