Nigeria Nears FATF Grey List Exit – NFIU
The Nigerian Financial Intelligence Unit (NFIU) has announced a significant milestone in the country’s efforts to combat money laundering and terrorism financing, successfully passing an on-site assessment by the Financial Action Task Force (FATF).
According to the agency, the assessment is an essential step toward exiting the global watchdog’s grey list.
FATF is the global body established in 1995 to lead international action to combat money laundering, terrorism, and proliferation financing.
On February 24, 2023, Nigeria was placed on the FATF Grey List due to increased capital inflows and deficiencies in combating money laundering, terrorism, and arms financing.
In a statement on Saturday by the NFIU, the agency announced that FATF has acknowledged the country’s “substantial progress” in implementing critical reforms under its Anti-Money Laundering, Countering the Financing of Terrorism, and Counter-Proliferation Financing Action Plan.
The organisation noted that the on-site visit by the FATF Africa Joint Group will now assess the sustainability, political backing, and operational effectiveness of the reforms implemented so far.
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“Following the latest FATF Plenary outcomes, Nigeria has been acknowledged for making substantial progress in the implementation of its Action Plan. This development paves the way for an on-site assessment by the FATF Africa Joint Group to verify that reforms are effectively implemented and politically supported, and that the progress made is sustainable over the long term.
“This progress reinforces Nigeria’s resolve to not only exit the grey list but to build a resilient AML/CFT system that enhances the integrity of its financial system and economy,” the NFIU said.
The agency credited the significant milestone to strong political leadership, particularly by President Bola Tinubu and key federal ministers, including the Attorney-General of the Federation, the Minister of Finance, and the Minister of Interior.
It also hailed the role of the judiciary, regulatory bodies, law enforcement agencies, and private sector actors.
According to the statement, Nigeria has made notable strides in improving beneficial ownership transparency, updating national risk assessments, and implementing risk-based supervision across both financial and non-financial sectors.
The NFIU, which coordinates Nigeria’s efforts under the FATF International Cooperation Review Group (ICRG) process, will continue to provide strategic oversight as the country prepares for the crucial next phase.
“All stakeholders are urged to maintain momentum and ensure that reforms remain deeply embedded and effective,” the NFIU stated, encouraging vigilance to protect the financial system from illicit abuse.
The agency also congratulated fellow South Africa, Mozambique, and Burkina Faso, for reaching similar milestones in their FATF compliance journeys.
