CBN hails exit from FATF Grey List, ‘growing integrity’ of financial system

*Dr. Olayemi Cardoso, Governor, Central Bank of Nigeria, says the decision of the Financial Action Task Force has affirmed Nigeria’s reform direction and the ‘growing integrity’ of the country’s financial system

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has applauded the West African country’s recent removal from the Financial Action Task Force (FATF) ‘Grey List’.

The CBN described the FATF’s move as a global vote of confidence in Nigeria’s ongoing financial reforms and anti-money laundering framework.

ConsumerConnect reports the FATF, world’s leading watchdog on illicit financial flows, Friday, October 24, 2025, announced that Nigeria with South Africa, Mozambique and Burkina Faso had been removed from its list of jurisdictions under increased monitoring, christened the “Grey List.”

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Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, in a statement at the weekend, said the FATF’s decision followed a successful on-site evaluation that confirmed Nigeria’s “significant improvements” in its regulatory and enforcement architecture

The Bank stated the FATF particularly noticed the country’s efforts at combating money laundering, terrorist financing, and proliferation financing in the economy.

The banking sector regulator also explained the delisting actually marked a major milestone in Nigeria’s two-year reform programme.

The statement noted the Federal Government has coordinated, and key institutions, such as the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission have supported the programme.

The Bankers’ Bank said its role in the process involved enhancing supervision, transparency, and governance in the financial sector through measures, such as strengthened oversight of banks and FinTech operators, updated anti-money laundering and counter-terrorist financing regulations, and improved compliance monitoring across remittance and foreign exchange platforms.

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The CBN Acting Director of Corporate Communications further said: “The FATF’s decision follows a two-year reform programme coordinated by the Federal Government of Nigeria, involving multiple agencies, including the CBN, the Federal Ministry of Justice, the Nigerian Financial Intelligence Unit, and the Economic and Financial Crimes Commission.

“The CBN’s contribution centred on enhancing supervision, governance, and transparency across the financial system.”

According to the Bankers’ Bank, the key reforms assessed by the FATF and the Inter-Governmental Action Group Against Money Laundering in West Africa regional assessment body, included Strengthened oversight of financial institutions through updated AML/CFT regulations, risk-based supervision, and fit-and-proper assessments, expansion of compliance reporting and monitoring across remittance channels, bureaux de change, and FinTech platforms to improve traceability and transparency.

It enumerated other reforms as the introduction of the Foreign Exchange Code and the Electronic Foreign Exchange Matching System, both designed to deepen market transparency and reduce manipulation risks in the Foreign Exchange market.

The CBN further said: “Enhanced inter-agency data-sharing and enforcement coordination between the CBN,

NFIU, EFCC, and law enforcement bodies. “Implementation of market governance tools, including the Foreign Exchange Code and Electronic Foreign Exchange Matching System.”

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The Bank explained: “Together, these measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system.

“These measures have materially strengthened Nigeria’s compliance with global standards and reinforced confidence in the integrity of its financial system.”

Benefits of Nigeria’s removal from FATF ‘grey list’, by CBN

The Central Bank of Nigeria emphasised that the country’s exit from the FATF grey list could unlock several economic benefits.

It said by restoring confidence in the country’s financial system, businesses are expected to face fewer restrictions in international transactions, while Nigerian banks may enjoy improved correspondent relationships with global partners.

The move will reduce compliance costs for Nigerian firms, improve access to international finance, and make cross-border payments faster and cheaper, the CBN stated.

The Bank said ultimately, this is expected to support trade, boost remittance inflows, and enhance foreign exchange stability.

Cardoso: FATF’s action is affirmation of Nigeria’s reform direction, ‘growing integrity’ of financial system

Speaking on the latest announcement, Dr. Olayemi Cardoso, Governor of CBN, in the statement said the FATF’s decision affirmed Nigeria’s reform direction and the “growing integrity” of its financial system.

Cardoso stated: “The FATF’s decision to remove Nigeria from the grey list is a strong affirmation of our reform trajectory and the growing integrity of our financial system.

“It reflects coordinated efforts of key national institutions working together to deliver sustainable, standards-based reforms.”

The Governor of CBN also said: “Our priority now is to consolidate these gains and ensure that compliance, innovation, and trust continue to advance hand in hand.”

It is recalled that Nigeria was placed on the FATF grey list February 2021 after the global body identified strategic deficiencies in the country’s framework for combating money laundering and terrorist financing.

The listing increased compliance scrutiny for Nigerian financial institutions and international transactions, often raising costs for trade and investment.

The Nigerian Government, however, has since implemented a series of corrective actions, including the strengthening of the NFIU’s autonomy, revision of AML/CFT laws, and greater coordination among regulatory and law enforcement agencies.

It is noted that Nigeria’s delisting well aligns with other recent international assessments that have improved the country’s economic outlook.

For instance, both Moody’s and Fitch Ratings recently upgraded the country’s outlook to positive.

They cited stronger external balances and credible fiscal and monetary policies, while the IMF’s 2025 Article IV Consultation highlighted gains in transparency and reserve adequacy.

Against the backdrop of these positive developments, Nigeria is said to have joined the ranks of other African economies demonstrating progress in meeting international financial integrity standards.

Industry observers have noted this could help to attract new investment inflows, and strengthen the credibility of Nigeria’s Naira in global financial markets.

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