Nigeria was listed by the Financial Action Task Force (FATF) in February 2023, as one of the countries with weak anti-money laundering (AML) policies globally.Â
The country has historically grappled with untraceable money, losing a significant amount to illicit financial transactions over the years. While efforts have been made to address this, Nigeria still contributes a substantial portion of illicit financial outflows from Africa.
Following its inclusion on the FATF greylist, Nigeria has been collaborating with the FATF to enhance its anti-money laundering and counter-terrorism financing (AML/CFT) measures. It has made progress in aligning with the FATF’s recommendations.
Key officials in Nigeria have pledged to elevate the country from the FATF Greylist to facilitate smoother international business transactions. Efforts have been made to strengthen customer due diligence in traditional finance and regulate cryptocurrency, a sector known for its potential misuse in money laundering activities.
However, there is still a need to address the regulation of designated non-financial businesses and professions (DNFBPs) to prevent inadvertent involvement in illicit financial activities. More work is required to close this gap identified by the FATF.
While initial policy reviews have been conducted by relevant regulators, more awareness and stringent compliance checks are necessary to combat potential money laundering activities effectively.
The timeline for achieving these objectives remains uncertain, especially considering the upcoming FATF review scheduled for November 2024.