• Tuesday, April 23, 2024
businessday logo


Nigeria among 21 countries on grey list, fighting against money laundering and financing for terrorism

Nigeria among 21 countries on grey list, fighting against money laundering and financing for terrorism

In the global fight against financial crimes such as money laundering and terrorist financing, the Financial Action Task Force (FATF) stands as a pivotal institution. Established in 1989.

The FATF is an intergovernmental organization that sets standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system.

One of the primary mechanisms through which the FATF operates is the identification and monitoring of jurisdictions with weak measures to combat these illicit activities.

This process involves the publication of two key documents three times a year, the High-Risk Jurisdictions subject to a Call for Action (Black List) and the Jurisdictions under Increased Monitoring (Grey List).

These lists serve as critical tools for assessing global compliance with anti-money laundering and counter-terrorist financing (AML/CFT) standards.

As of February 2024, the FATF has reviewed 131 countries and jurisdictions, publicly identifying 106 of them for their deficiencies in AML/CFT regimes,82 countries have taken the required steps to fix their weaknesses in combating money laundering and terrorist financing, and as a result, they are no longer part of the process.

The countries or jurisdictions included in the Black List are those with serious strategic deficiencies in countering money laundering, terrorist financing, and financing of proliferation.

The Black List includes:

Democratic People’s Republic of Korea (North Korea)

For countries listed in the Black List, the FATF calls upon all members to apply enhanced due diligence measures and, in severe cases, counter-measures to protect the international financial system.

The jurisdictions under increased monitoring (grey list) comprise of countries actively working with the FATF to address strategic deficiencies in their AML/CFT regimes. While these jurisdictions have committed to resolving identified deficiencies within agreed timeframes, they remain subject to increased monitoring.

The Grey List includes:

Burkina Faso
Democratic Republic of Congo
South Africa
South Sudan
Türkiye (Turkey)

These jurisdictions have demonstrated a willingness to cooperate with the FATF and have embarked on efforts to strengthen their AML/CFT frameworks. However, they continue to face challenges in implementation and enforcement, necessitating ongoing monitoring and support from the international community.