Global anti-money laundering watchdog the Financial Action Task Force (FATF) has included Nigeria and South Africa on its ‘grey list’ of countries that are subject to enhanced monitoring. Deficiencies in both jurisdictions’ anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks prompted the decision, which was announced on February 24.
The so-called ‘greylisting’ of Africa’s two biggest economies will deepen existing economic challenges in both markets, by stifling investment and increasing the costs of doing business. Countries added to FATF’s grey list, officially known as ‘jurisdictions under increased monitoring’, endure heightened observation by the international body until specific weaknesses in their AML/CFT regimes are addressed.
