Nigeria is set to exit the Financial Action Task Force’s (FATF) “gray list” as soon as next month, which could help lift capital inflows into Africa’s largest oil producer.
A 2021 report by the International Monetary Fund (IMF) found gray-listed countries experienced “a large and statistically significant reduction in capital inflows.”
Assessors from the FATF conducted on-site visits and noted significant progress in the action plans for Nigeria.
Nigeria was put under heightened scrutiny by the Paris-based FATF in February 2023 for shortcomings in tackling illicit financial flows.
The country is expected to come off the list on Oct. 24, the final day of an FATF plenary in the French capital.
The watchdog’s recommendations are closely tracked by global investors who’re wary of conducting business in places found to be deficient in anti-money laundering regulations.
Jurisdictions added to the list require closer monitoring, and the designation might cast serious doubt over the integrity of their financial systems.
Apart from setting standards on countering money laundering and terrorist financing, the FATF also conducts research to inform best practices on emerging issues, from virtual assets to sextortion.
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