Turning the Tide: South Africa and Nigeria Removed from FATF Grey List

In a significant regulatory development, South Africa and Nigeria have been excised from the Financial Action Task Force's (FATF) grey list. The Paris-based watchdog's plenary meeting announced the decision, which also saw Mozambique and Burkina Faso struck from the insidious roll.

Placed under increased scrutiny due to concerns over illicit money flows, the four African nations demonstrated marked improvements in their financial oversight mechanisms. South Africa enhanced its tools against money laundering and terrorist financing, while Nigeria bolstered inter-agency coordination. Mozambique improved financial intelligence, and Burkina Faso tightened institutional oversight.

The removal from the list is anticipated to facilitate easier capital entry and lower funding costs, as the International Monetary Fund reported a 7.6% reduction in GDP capital inflows for listed countries. This development is expected to invigorate trade and investment, improving the economic sentiments in Africa’s largest economies.