The Financial Action Task Force (FATF) Grey List is a list of countries identified by the FATF as having deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) regimes.
The FATF is an international organisation whose mission is to combat money laundering and terrorist financing on a global scale by establishing international standards, monitoring compliance, and promoting effective implementation of anti-money laundering and anti-terrorist financing measures.
Following an evaluation of its AML/CFT regime by the FATF, Nigeria was added to the FATF Grey List on February 24, 2023. The FATF found significant shortcomings in Nigeria’s AML/CFT regime, particularly in areas such as customer due diligence, beneficial ownership identification, and suspicious transaction reporting.
Burkina Faso, the Democratic Republic of the Congo, Mali, Mozambique, Senegal, South Africa, South Sudan, Tanzania, and Uganda are also on the grey list.
Being on the FATF Grey List can have serious consequences for a country’s economy, affecting its ability to access international financial markets and conduct international transactions. Being on the list can also result in increased scrutiny from financial institutions, which can lead to higher compliance costs and lower investment.
Nigeria has committed to implementing an action plan to strengthen its AML/CFT regime, including improving its legal framework, supervisory capacity, and risk-based approach to AML/CFT, in order to address the deficiencies identified by the FATF.
The FATF will continue to monitor Nigeria’s progress in implementing its action plan, and its status on the Grey List will be reviewed.