Nigeria Secures Upgrades on Five FATF Recommendations
…Moves Closer to Exiting Grey List
By Patience Ikpeme
Nigeria has achieved a significant milestone in its fight against money laundering and terrorist financing, securing upgrades on five key recommendations from the Financial Action Task Force (FATF).
This progress brings the country closer to exiting the FATF grey list, which it has been on since February 2023.
At the 42nd Technical Commission and Plenary Meeting of the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), held from November 17–23, 2024, in Freetown, Sierra Leone, Nigeria’s efforts were recognized and commended.
During the plenary, the country’s third Follow-Up Report was discussed, highlighting improvements in addressing technical compliance deficiencies identified in its 2021 Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Mutual Evaluation.
As it stands, Nigeria is either Compliant or Largely Compliant with 37 out of the 40 FATF Recommendations. The plenary upgraded five key recommendations, which include measures for designated non-financial businesses and professionals, transparency and beneficial ownership of legal persons and arrangements, regulation and supervision of designated non-financial businesses and professionals, and oversight of cash couriers.
The upgrades reflect Nigeria’s commitment to strengthening its legal and regulatory framework, particularly in combating money laundering, terrorist financing, proliferation financing, and other predicate offenses.
A statement from the Nigerian Financial Intelligence Unit (NFIU) disclosed that member states of GIABA and international partners, including the FATF, have commended Nigeria for its efforts. According to the NFIU, “this achievement will bolster the country’s mechanisms for tackling financial crimes and enhance its international reputation.”
Exiting the grey list is expected to yield several benefits for Nigeria, including easing the cost of diaspora remittances. Nigerians abroad will find it cheaper to send money home, a move that could bolster inflows and positively impact the economy.
The Nigerian delegation to the plenary was led by Hafsat Abubakar Bakari, Chief Executive Officer of the NFIU and Nigeria’s National Correspondent for GIABA. Bakari, who also chairs the GIABA Technical Commission, was joined by representatives from the Economic and Financial Crimes Commission (EFCC), the Special Control Unit Against Money Laundering (SCUML), the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Federal Ministry of Justice (FMOJ), the Corporate Affairs Commission (CAC), and the Nigeria Export Processing Zones Authority (NEPZA).
Nigeria’s progress at the plenary builds on years of effort to align with FATF standards. The latest upgrades mark a critical step in the country’s journey toward exiting the grey list, which has posed challenges to its financial system. With continued improvements and international support, Nigeria is optimistic about meeting all compliance requirements and restoring its financial credibility on the global stage.
