NAIROBI, Kenya — Four major African economies—South Africa, Nigeria, Mozambique, and Burkina Faso—have been officially removed from the Financial Action Task Force’s (FATF) “grey list” following successful efforts to bolster their Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) frameworks.
The FATF, a Paris-based global watchdog that sets international standards to prevent illicit finance, announced the decision after on-site visits confirmed that all four nations had met agreed-upon reform targets within the specified timelines.
The ‘grey list’ identifies countries with strategic shortcomings in their AML/CFT regimes that are actively cooperating with the FATF to address them.
FATF President Elisa de Anda Madrazo hailed the delisting as a significant achievement for the continent. Commending the successful reforms, she detailed the specific progress made: “Madrazo said South Africa revamped its tools to detect money laundering and terrorist financing while Nigeria created better coordination between agencies. ‘Mozambique increased its financial intelligence sharing, and Burkina Faso improved its oversight of financial institutions,’ Madrazo said.”
National officials applaud the milestone
Officials across the delisted countries welcomed the announcement, emphasizing the impact on their global economic standing.
Nigerian President Bola Ahmed Tinubu stated that the removal “represents a major milestone in Nigeria’s journey towards economic reform, institutional integrity and global credibility.” Nigeria’s Financial Intelligence Unit added that it had diligently implemented a comprehensive 19-point action plan to strengthen its systems.
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In South Africa, Edward Kieswetter, Commissioner at the South African Revenue Service (SARS), also expressed his satisfaction but stressed that the work is not over.
Kieswetter noted that future dedication is required, stating: “Removing the designation of grey listing is not a finish line but a milestone on a long-term journey toward building a robust and resilient financial ecosystem.”
Nigeria and South Africa had been placed on the list in 2023. They followed Mozambique (added in 2022) and Burkina Faso (added in 2021).
Kenya remains on the list
While the four nations celebrated their exit, Kenya remains designated on the FATF grey list after being flagged in February 2024.
This decision was based on identified deficiencies in its AML/CFT controls, which expose the country to the vulnerability of illicit financial flows (IFFs)—the illegal movement of money or capital across borders.
Kenya’s financial sector is expected to face continued scrutiny until these strategic deficiencies are fully resolved.
