Off the grey list: South Africa and Nigeria exit FATF's watchlist — what changes now?
A year on from the FATF's October 2025 plenary, the delisting of Africa's two largest economies still shapes how banks treat their money. The removal itself is documented; the size of the economic prize is the argument.
Key points
- The FATF removed South Africa and Nigeria from its grey list on 24 October 2025, after on-site reviews.
- Both countries had been listed since early 2023 over anti-money-laundering weaknesses.
- Mozambique and Burkina Faso were delisted at the same plenary.
- The claimed economic gain is debated: an IMF average, not a measured figure for either country.
What happened
The Financial Action Task Force, the Paris-based body that sets global standards against money laundering and terrorist financing, keeps a list of jurisdictions under increased monitoring — the grey list. Countries on it face heavier due diligence from banks abroad, which raises the cost of trade, correspondent banking and investment.
South Africa and Nigeria were both added in early 2023. At its October 2025 plenary, the FATF removed both — along with Mozambique and Burkina Faso — after on-site reviews found the agreed reforms had been delivered. Nigeria's finance minister said the move would ease cross-border transactions and improve capital flows; the practical question now is whether banks abroad actually loosen the checks that made the list expensive.
Claim by claim
Why this label: Announced at the FATF's October 2025 plenary in Paris, after on-site assessments found positive progress in each country.
On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.
Why this label: Both countries were added in early 2023 after the FATF identified weaknesses in their anti-money-laundering and counter-terrorism-financing regimes.
On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.
Why this label: The FATF's own summary of the reviews: South Africa upgraded its detection tools; Nigeria strengthened inter-agency coordination and completed a 19-point action plan.
On the ladder: a claim earns Verified from primary evidence, or from two independent sources that do not copy each other.
Why this label: Analysts and officials argue over the size of the benefit: one IMF study put the average grey-listing cost at 7.6% of GDP in lost capital inflows, but that is an average across countries, not a measured gain for either economy.
On the ladder: credible sources conflict, so we show both workings. One side's own statement is that side's position — never proof.
What we know / what we don't know yet
What we know
- The delisting date and the four countries removed (FATF plenary, October 2025).
- Both countries were added in early 2023.
- The reforms the FATF cited: detection tools (South Africa), inter-agency coordination and a 19-point plan (Nigeria).
What we don't know yet
- How quickly banks abroad will actually ease due diligence for the two countries.
- The measured economic gain for either country — estimates are averages, not receipts.
Why it matters
Grey-listing raises the cost of every cross-border payment, trade deal and investment flow through a country. For Africa's two largest economies, delisting is supposed to lower those costs — but only if banks and investors actually change their behaviour, which is why the follow-through matters more than the announcement.
Update history
No silent edits. Every change is written here, with its time.
- Latest
Story published on the first anniversary of the October 2025 plenary.