Nigeria to exit FATF grey list of financial crimes By Late 2025 

Nigeria Aims to Exit FATF Grey List by 2025, Says NFIU CEO

Nigeria is on track to exit the Financial Action Task Force (FATF) grey list by late 2025, according to Ms. Hafsat Bakari, the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU). The FATF, an international body established in 1995, is pivotal in the global fight against money laundering, terrorist financing, and the proliferation of financial crime.

During a recent announcement, Bakari emphasized that moving off the grey list, which includes countries under increased surveillance, would signify a monumental step forward for Nigeria, reinforcing its pledge to foster a more transparent financial framework.

She pointed to the recent approval of Nigeria’s fifth progress report by the FATF as a significant milestone in the country’s ongoing efforts to bolster its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) system. This approval highlights Nigeria’s commitment to aligning with international standards in the battle against financial crime.

Further explaining the development, Bakari noted that the FATF’s recognition reflects the success of collaboration among various stakeholders in Nigeria, contributing to favorable outcomes in combating money laundering and terrorist financing.

Earlier this month, the FATF praised Nigeria’s significant advancements, approving its fifth progress report since being placed on the grey list in February 2023. As detailed by NFIU’s strategic communications officer, Sani Tukur, the plenary acknowledged Nigeria’s remarkable progress in executing an action plan devised with its International Cooperation Review Group (ICRG). This plan targets deficiencies highlighted in the 2021 AML/CFT mutual evaluation report while also recognizing Nigeria’s strong political commitment to ongoing reforms.

Key points to note include:

• All relevant stakeholders, under the coordination of the NFIU, have taken decisive actions to enhance the effectiveness of Nigeria’s AML/CFT framework.
• The developments indicate that Nigeria is likely to complete its action plan by the approaching May deadline, with hopes of exiting the FATF grey list by the end of the year.
• During its review of Nigeria’s progress, the FATF plenary also announced the removal of the Philippines from its list of jurisdictions under increased monitoring, while adding the Lao People’s Democratic Republic and Nepal to the list.

Bakari led Nigeria’s delegation at the recent FATF meetings held in Paris. The FATF continues to play a crucial role in spearheading global efforts against financial malpractice and illicit financing channels. The grey list is comprised of countries subject to enhanced monitoring, actively seeking to address shortcomings in their AML/CFT practices.