Nigeria Secures Five Upgrades, Set to Exit FATF’s Grey List
Nigeria has made significant strides in its fight against money laundering and terrorism financing by securing upgrades on five recommendations set forth by the Financial Action Task Force (FATF).
This development moves the nation closer to exiting the grey list that has cast a shadow over its financial reputation since February 2023.
The upgrades were acknowledged during the 42nd GIABA Technical Commission and Plenary Meeting held from November 17 to 23, 2024, in Freetown, Sierra Leone.
At the meeting, Nigeria’s third Follow-Up Report was reviewed, showing the country’s advancements in addressing technical compliance issues identified during its 2021 Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Mutual Evaluation.
A statement from the Nigerian Financial Intelligence Unit (NFIU) on Sunday disclosed that “As it stands, Nigeria is now compliant or largely compliant in 37 out of the 40 FATF recommendations.”
The recognised improvements has to do with five specific recommendations previously classified as partially compliant.
These include measures related to designated non-financial businesses and professionals, transparency in beneficial ownership of legal persons and arrangements, regulation and supervision of designated non-financial businesses and professionals (DNFBPs), and the management of cash couriers.
The Nigerian Financial Intelligence Unit (NFIU) hailed this recognition, stating that, “Member states of GIABA and international partners, including the FATF, have commended Nigeria on these efforts. This achievement will further strengthen the country’s mechanisms in combatting money laundering, terrorist financing, proliferation financing, and other predicate offenses.”
The delegation to the plenary was led by Hafsat Abubakar Bakari, the Chief Executive Officer of the NFIU, who also represents Nigeria at ECOWAS’s Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).
The team comprised representatives from key financial and regulatory institutions, including the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN), and the Federal Ministry of Justice.
Exiting the FATF grey list is crucial for Nigeria, as it is expected to enhance the country’s economic standing globally and facilitate smoother diaspora remittances. Improved compliance will not only lower the costs for Nigerians abroad sending money home but will also bolster investor confidence and economic growth.
As Nigeria moves forward with these upgrades, the NFIU noted that “the nation remains committed to strengthening its financial systems and maintaining transparency in its economic dealings, aiming to restore its international financial reputation.”
