Nigeria and South Africa have been removed from the Financial Action Task Force grey list after the October plenary in Paris. The decision signals progress on anti-money-laundering and counter-terrorist financing controls, and could ease capital flows, cut transaction frictions, and improve borrowing costs for the continent’s two largest economies.  

The FATF grey list identifies jurisdictions under increased monitoring for weaknesses in AML and CTF regimes. South Africa was placed on the list in February 2023, then pursued a 22-point action plan, culminating in an on-site review in July 2025 and formal delisting on October 24, 2025. Nigeria was likewise delisted at the same plenary. Governments in both countries confirmed the decision, and domestic agencies framed it as a milestone that now requires sustained enforcement. 

Reuters and the Financial Times reported that Mozambique and Burkina Faso were also removed at the same meeting. The announcement immediately fed expectations for stronger investor sentiment and cheaper trade finance. 

Analysis

Most coverage focuses on symbolism, but the practical shift is in risk models. Global banks and correspondent networks price grey-listed jurisdictions with higher compliance overhead, tighter KYC thresholds, and in some cases reduced limits for cross-border settlement. Delisting allows credit committees to revisit country limits and reduce add-on risk premiums, which can lower costs for importers, exporters, and fintechs processing remittances and card settlements. That relief shows up first in trade finance and dollar liquidity, then in portfolio flows.

For South Africa, the grey list exit caps a two-year institutional repair effort that included stronger beneficial-ownership registries, enhanced supervisory capacity, and prosecutorial follow-through. National Treasury and the Financial Intelligence Centre have emphasized that the work does not end here, since FATF expects measurable outcomes such as successful investigations and sanctions ahead of the next mutual evaluation in 2026 to 2027. This is the difference between “policy on paper” and “effectiveness,” which is what global risk teams watch now. 

For Nigeria, removal narrows the credibility gap that raised transaction frictions in recent years. Local officials describe the decision as a confidence boost for reforms, with commentary pointing to smoother remittances, improved access to trade lines, and more attractive conditions for FDI. The key test will be sustained coordination between the central bank, the NFIU, law enforcement, and commercial banks to translate policy upgrades into enforcement outcomes that counterparties recognize. 

Implications

• Capital access and pricing: Banks can revisit correspondent relationships and reduce compliance buffers, which should lower costs for cross-border payments and letters of credit. Expect incremental reopening of risk appetite among global lenders and DFIs. 

• FX and market sentiment: Delisting removes a structural overhang on country risk. Analysts expect modest currency support and improved demand for local debt issues, although macro fundamentals will still dominate direction. The rand’s initial bounce after the announcement is an early read on sentiment. 

• Private sector winners: Import-heavy sectors, logistics, fintech, and manufacturing stand to benefit from cheaper working-capital lines and easier settlement corridors. Nigerian remittance processors in particular could see reduced friction on U.S. and U.K. corridors. 

• What could go wrong: FATF delisting is not permanent if enforcement backslides. Both countries will be judged on prosecutions, asset recoveries, and inter-agency coordination. Slower delivery here risks a credibility relapse at the next evaluation window. 

Takeaway

The real story is not the label change, it is whether banks and regulators can convert it into cheaper money and wider market access. If enforcement momentum holds, Nigeria and South Africa have traded an intangible stigma for tangible savings across payments, trade finance, and investment flows. Investors will be watching for the first quarter of 2026 data to confirm the pricing shift.