On February 24, 2023, Nigeria was placed on the “Grey List” by the Financial Action Task Force (FATF), along with South Africa.
This designation indicates increased monitoring by FATF as both countries actively work to address strategic deficiencies in combating money laundering, terrorist financing, and proliferation financing.
FATF is an independent intergovernmental organization that develops and promotes policies to protect the global financial system. It evaluates jurisdictions based on their Anti-Money Laundering/Counter Financing of Terrorism and Proliferation (AML/CFT/P) standards, identifying areas of improvement. Nigeria’s inclusion on the Grey List holds significant financial and commercial implications for businesses operating within the country.
This publication by TEMPLARS Partner Dayo Okusami, Counsel Jude Odinkonigbo, and Associates Lawal Kazeem and Elizabeth Toweh highlights the reasons for Nigeria’s grey-listing, discusses the potential financial and commercial repercussions, and offers recommendations for businesses to minimize the risk and impact on their operations.