The Financial Action Task Force (FATF), an intergovernmental organisation focused on addressing global financial crime, has announced the removal of four African states—South Africa, Nigeria, Mozambique, and Burkina Faso—from its list of countries subject to enhanced monitoring. The announcement was made on 24 October 2025, following the conclusion of the organisation’s plenary meeting in Paris.
South Africa and Nigeria had been listed in 2023, while Mozambique and Burkina Faso were added in 2022 and 2021 respectively. Inclusion on the FATF grey list is based on a country’s progress in addressing identified strategic deficiencies in its frameworks to counter money laundering, terrorist financing, and proliferation financing.
According to a public statement by the FATF, each of the four countries has taken steps to improve the implementation of relevant financial safeguards. South Africa was noted for strengthening mechanisms to detect illicit financial activities, Nigeria for enhancing inter-agency cooperation, Mozambique for improving information-sharing systems, and Burkina Faso for increasing oversight of financial institutions and non-financial gatekeepers.
FATF President Elisa de Anda Madrazo commented during a press briefing that the plenary marked “a positive development for the African continent” within the broader context of global financial system regulation. The removal from the grey list does not suggest the elimination of financial crime risks but indicates a recalibration of monitoring measures following observed progress.
Governments in the affected countries acknowledged the FATF’s decision. South Africa’s National Treasury described it as a procedural development reflecting regulatory improvements, while Nigeria’s Ministry of Finance stated that the decision aligns with ongoing national reforms. Both countries highlighted continued efforts to strengthen institutional frameworks.
The economic implications of grey-listing and subsequent removal have been the subject of analysis. A study by the International Monetary Fund estimated that inclusion on the FATF’s list can be associated with a reduction in capital inflows of up to 7.6% of GDP. Financial analysts have noted that delisting may ease some transactional barriers and improve access to global financial systems, although such effects are contingent on broader macroeconomic factors.
Vincent Gaudel, a compliance expert at LexisNexis Risk Solutions, noted that banks operating in delisted jurisdictions may experience fewer frictions in cross-border payments and trade finance operations. Similarly, Bastian Teichgreeber, Chief Investment Officer at Prescient Investment Management, suggested that while the delisting is unlikely to alter investment dynamics immediately, it may contribute incrementally to improved perceptions of risk.
The FATF plenary also included an update on Iran, which remains on the organisation’s blacklist. Although Iran has resumed engagement with the FATF process, the organisation reported that the majority of its action plan commitments—dating back to 2016—have yet to be fulfilled.
The removal of the four African countries reflects a broader trend in the evolution of financial oversight mechanisms across diverse regulatory environments. It may also prompt a reassessment of how financial governance capacity is evaluated internationally, particularly in contexts where historical structural disparities continue to shape global perceptions.
While global regulatory frameworks such as those advanced by the FATF provide one lens through which to assess risk, the agency demonstrated by national institutions across Africa in responding to those assessments reflects an evolving policy landscape that is both locally informed and globally engaged. The long-term impact of such developments remains subject to institutional durability, regional cooperation, and the ability to address systemic vulnerabilities in a manner tailored to domestic contexts.
