Nigeria has successfully exited the Financial Action Task Force (FATF) grey list, thus demonstrating its commitment to combating money laundering and terrorist financing.

This comes after the country implemented key reforms and addressed 13 out of 15 action points outlined by the FATF.

The Vice-President of the FATF, Jeremy Weil, made this disclosure during the 40^th Inter-Governmental Action Group against Money Laundering (GIABA) Technical Commission and Plenary Meeting held in Abuja.

The FATF had In February placed Nigeria on its grey list and expected the country to make significant improvements in 15 areas.

The Director/CEO of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur said that based on the efforts made by all bodies in Nigeria involved in the efforts to tackle the identified areas, the country was able to tackle 13 out of the 15 action points identified.

In the FATF process, once a country is grey-listed, it is given an Action Plan which details the actions it is expected to take within agreed timelines to demonstrate the effectiveness of its AML/CFT regime, and, therefore, exit the grey list.

Nigeria was placed on the grey list in February 2023 and was given a 15-item Action Plan with deadlines spanning up till May 2025.

The average timeframe for countries’ exit from the FATF grey list is two (2) years. For example, Barbados, Jamaica and Uganda have been under the process since February 2020. Many other jurisdictions have remained on the grey list since 2021. They are not failing the FATF review, they are only expected to sustain progress and implement action items before agreed timelines.

The inclusion of countries in the list is predicated on an agreement that the country has engaged with the FATF, has taken steps to improve the effectiveness of its AML/CFT systems and has expressed political commitment at the highest levels to sustaining this progress.

Also, countries under the International Cooperation Review Group (ICRG) grey list are expected to report on progress achieved in the implementation of the action items every four months, at the FATF plenary meetings. Therefore, no country is expected to evidence the complete implementation of all its action items within the first progress report.

The NFIU would like to reiterate that contrary to some insinuation Nigeria has not fallen behind any of the timelines given by the FATF. In fact, out of the fifteen (15) action items on Nigeria’s Action Plan, thirteen (13) of them have already been assessed as Partly Addressed. It is worth noting that under the FATF grey list, the global watchdog is interested only in the progress that can be sustained over time. It is therefore impossible to “meet” the FATF’s “recommendations” within eight months.

In the same vein and under a separate process coordinated by the Inter-Governmental Action Group against Money Laundering (GIABA), Nigeria’s framework for criminalizing money laundering and terrorist financing has been related to being Compliant and Largely Compliant respectively.

Sani Tukur, Head of Media at the NFIU said it is gladdening to note that Nigeria has not been faulted by the FATF, and the country has not failed to scale any reviews by the FATF. All relevant authorities are working earnestly to fully implement Nigeria’s 15 action items before the timelines elapse. (The Nation)

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