Nigeria Edges Closer to Exiting FATF Grey List, Following Major Reforms

Nigeria Edges Closer to Exiting FATF Grey List, Following Major Reforms

Nigeria has achieved a major milestone in its efforts to exit the Financial Action Task Force (FATF) grey list, following the successful implementation of comprehensive reforms to strengthen its Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) framework.

At a recent FATF Plenary meeting in Strasbourg, France, the global financial watchdog acknowledged that Nigeria has fully implemented its Action Plan within the agreed timeline — a feat accomplished by only a few jurisdictions on the grey list. This recognition marks significant progress in the country’s long-running battle against illicit financial flows and positions Nigeria favorably ahead of a forthcoming onsite assessment.

The Nigerian Financial Intelligence Unit (NFIU), which serves as the Secretariat of the Inter-Ministerial Committee on AML/CFT/CPF, played a central role in coordinating national efforts. Working alongside a broad coalition of stakeholders, the NFIU helped develop and drive a strategic roadmap that addressed the deficiencies identified in Nigeria’s 2021 mutual evaluation report.

Hailing the achievement, Hafsat Abubakar Bakari, Chief Executive Officer of the NFIU, praised the leadership of President Bola Ahmed Tinubu, GCFR, whose administration created the enabling environment for reform. “This is a testament to Nigeria’s political will and institutional commitment to fighting financial crimes,” Bakari stated.

The process was steered with strong direction from key government ministries, particularly the Office of the Attorney-General of the Federation, the Ministry of Finance and the Coordinating Ministry of the Economy, and the Ministry of Interior. Their leadership of the Inter-Ministerial Committee was cited as pivotal to the plan’s success.

Support also came from a wide array of federal institutions and agencies, including law enforcement, regulatory bodies, and the judiciary. The joint efforts of the Central Bank of Nigeria, Economic and Financial Crimes Commission, Department of State Services, Nigeria Customs Service, and dozens of others contributed to the robust national response.

While Nigeria’s implementation of its Action Plan has been completed, FATF will now conduct an onsite assessment in the coming weeks. This visit is a critical final step in determining Nigeria’s full exit from the grey list. Authorities view it as a chance to showcase the depth and durability of reforms, as well as the collaboration between public and private sectors to combat financial crime.

The NFIU reaffirmed its commitment to continue working with all stakeholders to fortify the country’s financial integrity and ensure lasting protection against money laundering, terrorist financing, and other threats.