When the Financial Action Task Force (FATF) announced that Nigeria, South Africa, Mozambique, and Burkina Faso had been removed from its grey list of countries under increased monitoring, it marked more than just a procedural change. It was a symbolic turning point, a reflection of Africa’s growing maturity in tackling illicit finance and aligning with global financial standards. Yet, the real challenge now lies in whether these countries can sustain the reforms that earned them this recognition.
Delisting from the FATF grey list is no small feat. It signals that a country has made “significant progress” in addressing strategic deficiencies in its anti–money laundering (AML) and counter–terrorist financing (CTF) systems. For investors and global markets, this translates directly into lower risk perception, better access to international banking, and potentially lower borrowing costs.
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For Nigeria, this milestone comes after years of reputational setbacks tied to illicit financial flows and regulatory loopholes. Since being greylisted in February 2023, Nigeria has revamped its Money Laundering (Prevention and Prohibition) Act, improved coordination among agencies such as the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU), and expanded beneficial ownership transparency. The FATF’s October 2025 report confirmed that Nigeria had addressed all identified deficiencies, noting “strong political commitment and measurable improvement in enforcement and supervision.”
The removal is expected to improve Nigeria’s standing with investors, particularly in the banking and fintech sectors, which had faced constraints in correspondent banking relationships. According to IMF analysis, greylisting previously increased transaction costs and discouraged foreign direct investment inflows. With Nigeria’s removal, those barriers are expected to ease.
For South Africa, Africa’s most industrialised economy, delisting represents both relief and responsibility. The country was placed on the list in February 2023 following concerns over weak enforcement of AML laws, opaque beneficial ownership structures, and corruption-linked money flows. In response, the National Treasury, Financial Intelligence Centre (FIC), and South African Reserve Bank introduced robust reforms, including amendments to the Financial Intelligence Centre Act and Companies Act, ensuring better transparency in company ownership.
The FATF praised South Africa’s “decisive actions and enhanced effectiveness of its financial intelligence framework.” Economists forecast that the move will help stabilise the rand and attract renewed confidence from investors wary of compliance risks.
Country by Country: How Reforms Paved the Way
Mozambique’s journey off the list was equally noteworthy. Once flagged for weak institutional capacity and gaps in AML enforcement, the government strengthened the Financial Information Office (GIFiM), increased training for financial sector regulators, and tightened oversight of money transfers, especially in the northern provinces affected by insurgency. FATF’s October 2025 statement cited “sustained commitment at the political and operational levels” as key to Mozambique’s success.
Burkina Faso, meanwhile, faced a particularly complex challenge. Amid ongoing insecurity, the country managed to strengthen its National Financial Information Processing Unit (CENTIF) and improve data-sharing mechanisms with regional and international counterparts. FATF commended the country’s “resilience and continued efforts to enhance compliance under difficult national conditions.” These steps have not only aligned the countries with FATF’s 40 recommendations but also strengthened domestic governance and accountability.
Beyond Delisting
Yet, as South Africa’s National Treasury noted, “delisting is not the finish line.” The FATF echoed that sentiment, emphasising that countries must maintain reforms to prevent backsliding. Sustained monitoring by regional bodies, including the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), will ensure ongoing compliance.
For Nigeria, maintaining the reform momentum will require continuous enforcement against politically exposed persons and stricter monitoring of Designated Non-Financial Businesses and Professions (DNFBPs). South Africa must further strengthen asset recovery systems and ensure full transparency in public procurement. Mozambique and Burkina Faso, both emerging from complex governance challenges, will need continued capacity-building support from international partners.
Reform or Reversal?
FATF President Raja Kumar described the removals as “a positive story for the continent of Africa,” citing them as evidence that African nations can rise to international standards of transparency. However, analysts urge caution. The structural vulnerabilities that led to greylisting, from corruption to limited institutional independence, remain.
The question now is whether these reforms represent deep systemic change or temporary compliance driven by external pressure. Economists argue that sustained political will, effective supervision, and strong civil society oversight will determine whether the progress endures.
Still, the symbolism is powerful. For decades, narratives around Africa and financial governance were dominated by risk and opacity. The FATF’s October 2025 decision flips that script, portraying Africa not as a laggard in reform, but as a region capable of leading global best practices when commitment aligns with political resolve.
What the Markets Are Saying
Market responses have been cautiously optimistic. In Nigeria, banking executives noted that delisting will likely strengthen correspondent banking relationships, especially with European and North American institutions. Analysts at Fitch Ratings and Moody’s suggested that improved FATF compliance could support sovereign credit outlooks over time, particularly if fiscal and governance reforms continue.
In South Africa, the rand appreciated slightly following the announcement, while capital markets saw renewed interest from institutional investors reassessing country risk. In Mozambique, the IMF has projected that compliance improvements could enhance the effectiveness of donor funding and private capital participation in gas and infrastructure projects.
A Continent’s New Chapter
Taken together, these developments represent a wider narrative shift for Africa. The continent is no longer merely responding to global financial governance frameworks — it is actively shaping them. With four nations successfully exiting the FATF’s grey list in one review cycle, Africa is sending a clear message: reform, accountability, and transparency are not external impositions but internal imperatives for sustainable growth.
As Nigeria’s Minister of Finance, Wale Edun, remarked shortly after the announcement, “This is not just about being delisted; it’s about building trust in our institutions, our markets, and our people.”
Africa’s journey toward financial integrity is far from over, but October 2025 may well be remembered as the moment the continent turned a corner, proving that with commitment and cooperation, it can set new standards for financial credibility on the global stage.
