Nigeria and South Africa may Leave FATF Grey List in October

Nigeria and South Africa could be removed from the Financial Action Task Force (FATF) grey list in October. FATF is a global body that fights money laundering and terrorist financing. Both countries were put under extra monitoring in February 2023 because their systems to stop illegal money were not strong enough.

In recent weeks, FATF teams visited and checked progress. They found big improvements in Nigeria and South Africa. They also saw strong progress in Burkina Faso and Mozambique. The final decision will be made at the FATF meeting in Paris, with an announcement expected on October 24.

Being on the grey list does not bring automatic punishment, but it hurts a country’s image and can scare away investors and banks.

An IMF study says grey listing can cut foreign money coming into a country by up to 7.6% of GDP. Leaving the list would be good news for trade, cross-border payments, and investment.

Officials say South Africa has met “all or nearly all” of the required actions. Mozambique says it has completed all 26 steps needed to be removed. Nigeria has also strengthened its rules, supervision, and enforcement against illegal funds. South Africa’s Treasury says it will comment after FATF announces its decision.

If these countries are delisted, confidence should improve. That could help projects and businesses move forward, such as Mozambique’s planned restart of a $20 billion natural gas project by TotalEnergies.