Zimbabwe News Update
africanews
1 min read
NigeriaNigeria, South Africa, Mozambique, and Burkina Faso have been removed from the Financial Action Task Force’s (FATF) global “grey list.”The FATF, a global watchdog that tracks how countries combat money laundering and terrorist financing.
According to the group, the four nations have made “significant progress” in addressing weaknesses that previously rendered them high-risk destinations for illicit financial flows.The announcement, made in Paris last Friday, is being described as a “vote of confidence” for Africa’s two largest economies, Nigeria and South Africa, whose grey-listing in recent years had raised concerns among investors and international lenders.What exactly is the grey list?When a country is grey-listed, it means the FATF believes it has gaps in its financial monitoring systems.
Things like poor oversight of money transfers, weak enforcement of anti-terror finance laws, or limited transparency in banking operations.While grey-listing isn’t as severe as being blacklisted, it often leads to increased scrutiny from international banks, costlier transactions, and reduced foreign investment.Some economic analysts report that for countries like Nigeria and South Africa, both battling inflation and currency instability, the grey list became an economic red flag that discouraged global investors and made it harder for local businesses to secure international funding.How they got off the listNigeria introduced tougher anti-money-laundering rules, tightened oversight of digital and mobile money transactions, and improved coordination between its financial intelligence units and the Economic and Financial Crimes Commission (EFCC).South Africa, after years of corruption scandals and state capture cases, pushed through reforms that gave regulators more power to trace suspicious transactions and hold public officials accountable.FATF said the changes “demonstrate substantial effectiveness and political commitment,” while warning that continued vigilance will
