Nigeria and South Africa may be removed from the Financial Action Task Force’s (FATF) grey list by next month.
Bloomberg, in a report on Tuesday, said sources familiar with the matter disclosed that the task force’s assessors, who carried out on-site visits in recent weeks, reported significant progress.
The Paris-based FATF had placed Nigeria and South Africa under increased monitoring in February 2023 over weaknesses in tackling illicit financial flows.
“A final decision is expected on October 24 at the FATF plenary in Paris,” the report reads.
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“Burkina Faso and Mozambique are also in line to be removed from the list, pending confirmation by the watchdog’s 40-member countries.”
Commenting on the development, Lauren van Biljon, senior portfolio manager at Allspring Global Investments, said exiting the grey list would signal that reforms introduced since last year are effective.
She also said the market impact may be modest but could provide a short-term lift to asset prices.
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The FATF is an intergovernmental policy-making body that seeks to combat money laundering and terrorism financing.
Countries in its grey list typically face tougher scrutiny of their financial systems.
On June 14, the Nigerian Financial Intelligence Unit (NFIU) said the country had recorded a breakthrough in its fight against money laundering and terrorism financing, earning the approval of the FATF for an on-site assessment.
In July, the federal government said more than 730 individuals have been convicted for terrorism-related offences in Nigeria.
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