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Nigeria, South Africa Poised to Exit Dirty-Money List in October

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Nigeria and South Africa are poised to exit a global financial watchdog’s “gray list” as soon as next month, marking a change in fortune for two of the continent’s biggest economies.

The two nations were put under heightened scrutiny by the Financial Action Task Force in February 2023 for shortcomings in tackling illicit financial flows. Assessors from the Paris-based FATF conducted on-site visits in recent weeks and subsequent feedback on the action plans for those countries — as well as for Burkina Faso and Mozambique — noted significant progress, according to people familiar with the matter who asked not to be identified as the deliberations are private.

The watchdog’s recommendations are closely tracked by global investors who’re wary of conducting business in places found to be deficient in anti-money laundering regulations.
All four countries are expected to come off the list on Oct. 24, the final day of an FATF plenary in the French capital, the people said. No final decisions have been made. Listings are determined based on a consensus among the group’s membership, which includes the US, UK, European Commission, China, Japan and India.

Nigeria and South Africa exiting the list “would certainly be good for sentiment,” said Lauren van Biljon, senior portfolio manager at Allspring Global Investments UK Ltd.

“It would be confirmation that the reforms and measures put in place in the wake of the gray listing are both significant and sticky,” she said. The direct market impact may be fairly modest though a short-term lift in asset prices is possible, Van Biljon said.

Countries added to the list require closer monitoring, and the designation may cast serious doubt over the integrity of their financial systems.

A 2021 report by the International Monetary Fund found gray-listed countries experienced “a large and statistically significant reduction in capital inflows.”

South Africa’s National Treasury said it would comment after the FATF makes its decision public next month. It also referred Bloomberg to a statement issued in July after the FATF’s on-site visit in which it said South Africa had substantially completed all 22 action items required to be removed from the list.

Mozambique has completed the 26 actions needed to be delisted, said Luís Abel Cezerilo, national coordinator for the country’s removal from the gray list.

“We expect a good result, but we don’t know — we need to wait,” he said by phone on Monday. The country’s removal from the list would come at a crucial time, just as TotalEnergies SE is anticipated to resume its $20 billion natural gas export project, Cezerilo said.

Madi Tapsoba, an official with the Inter-Governmental Action Group against Money Laundering in West Africa, said Burkina Faso has implemented all 37 measures needed to exit the list. A finance ministry official and a government spokesman didn’t respond to calls and text messages seeking comment.

A spokesperson for the FATF declined to comment.

Under the presidency of Mexican official Elisa de Anda Madrazo, the FATF has revamped its gray-listing criteria. It has placed a greater emphasis on scrutinizing the body’s wealthiest members, while putting less of a focus on jurisdictions classified as least-developed countries, which typically pose a lower systemic risk.

Apart from setting standards on countering money laundering and terrorist financing, the group also conducts research to inform best practices on emerging issues, from virtual assets to sextortion.

Source: https://businessday.ng/news/article/nigeria-south-africa-poised-to-exit-dirty-money-list-in-october

Good news to read. Slow and steady, we shall get there for sure

We shall get there someday.

Nigeria cannot afford to fail

DaddyJapan:
Source: https://businessday.ng/news/article/nigeria-south-africa-poised-to-exit-dirty-money-list-in-october

God Bless Nigeria.
God Bless Africa.
Na Good news I wan dey hear oo

May Tinubu get it right and lead us to a promised land.

Good news for the lovers of Nigeria but bad news to the haters

Funny how a common Paris based individuals turned opinion agencies are basing their baseless agenda against Africas two biggest sovereign nations on corruption.
The same France that's stealing Africas money, artefacts and best brains is evaluating corrupt practices.

How I wish African leaders get it house in order to shut these clowns up formerly with good and people oriented governance.

May God heal our land

Nice development. Both countries has a strong economy that can benefits the continent

This is such good news. The CBN has been doing a lot to ensure compliance lately.

The west needs our money again, good news though

We getting there. Good news on the beat. DJ YK muule. Can't wait for nigeria to start ditching the West, treat their fck up wella. Very very important.

Let's join hands with Tinubu for a better Nigeria!

Abbeytoy:
May Tinubu get it right and lead us to a promised land.

Bullion van criminal lead you people to promised land?!!

Na waaa for waaaa ooo

fistonati:
Funny how a common Paris based individuals turned opinion agencies are basing their baseless agenda against Africas two biggest sovereign nations on corruption.
The same France that's stealing Africas money, artefacts and best brains is evaluating corrupt practices.

How I wish African leaders get it house in order to shut these clowns up formerly with good and people oriented governance.

May God heal our land

I'm glad to see that someone else sees what I saw, some idiots here are celebrating some white bullies opinion.

Always in future tense...cho cho cho Talk is cheap , no workings

Disenfranchised:
Bullion van criminal lead you people to promised land?!!

Na waaa for waaaa ooo

He's leading and you have nothing to do but cry...

I pray to God to lead him right so the country can get better.

South Africa’s National Treasury said it would comment after the FATF makes its decision public next month.

Funny list. What of those corrupt funds stashed abroad.

Here’s a simple breakdown of the article to a layman:

What’s going on?

Nigeria and South Africa are likely to be removed from a “gray list” (a kind of watch-list) in October.

This list is kept by the Financial Action Task Force (FATF), a global body that tracks whether countries are doing enough to prevent money laundering, illicit finance, etc.

The two were placed on the list in February 2023 for not doing enough to control dirty money flows.


Why this matters

Being on the gray list makes investors more nervous. It signals doubts about a country’s financial systems and regulation.

If Nigeria and South Africa get off the list, it could improve global confidence in them, possibly leading to more investment.

But — nothing is final yet. The decision must be approved by FATF members at a plenary meeting in late October.


Bottom line (in everyday terms)

If things go as expected, Nigeria and South Africa will shed a negative label in the financial world. That could help with their reputation and attract more foreign money. But the final “okay” hasn’t been given yet — so we wait.

If it happens, we may start receiving money through PayPal officially.

In real life terms:


1. Banks & Transfers

When a country is on the FATF gray list, banks in other countries treat it with suspicion.

Sending or receiving money internationally can take longer.

Extra checks, extra paperwork, sometimes higher costs.
So if you’re wiring money abroad (say, paying tuition or receiving funds from family), the process might be stressful and slow.


2. Businesses & Investors

Big companies or foreign investors often avoid “gray-listed” countries.

They worry about money laundering risks or penalties.

That means less foreign investment, fewer jobs, and slower economic growth.
For a Nigerian or South African startup trying to attract international partners, that label is like a red flag.


3. Ordinary People

It’s not that someone will knock on your door because of the gray list. The effect is indirect:

Fewer investors = weaker economy = fewer opportunities.

Banks get stricter = harder to access loans or move money around.

Currency may take a hit if confidence drops = things get more expensive.



4. Why exiting matters

If Nigeria and South Africa are removed from the list:

Banks relax some of those extra checks.

International transactions become smoother.

More investors may come in, which could boost jobs, infrastructure, and possibly the strength of the naira/rand.



In short: the gray list doesn’t hurt you directly, but it makes life more expensive and complicated. Exiting the list won’t solve all problems, but it removes a “stigma” that has been making things harder for the economy.

I want to understand what it means so that I can start to get excited. What about the money our politicians are using to purchase properties outside the country?
Nigeria is not known for much as regards illicit funds from illicit drugs.
So it's normal that we leave that list sooner.

Hopefully it comes to fruition.

I’ve seen people say Nigerians de-market their country, such folly.

I know of another financial organization that has blacklisted Nigeria for investors. Currently we are in a high risk zone.
Nigeria has the population to host the production plants of major fashion brands like India and Bangladesh, or electronic assembly plants like China but vague and unstable financial policies have bedeviled us.

Also, the president making feeble attempts at reforms while pandering to the will of political players, and making uninformed financial decisions is a no-no for any investors, they like to read patterns and trend. Forecasting where necessary and Nigeria at this time doesn’t afford such.

Just imagine if the portharcourt and Warri refineries attracted foreign investments.

When President Tinubu told his hosts in Brazil that corruption has been nipped in the bud in the area of forex, So-werey was infuriated and went on the rooftop to call a whole Jagaban of the universe a "criminal" while his deranged and unpatriotic followers egged him on to be disrespectful.

What arrant bravado in the guise of activism!

This report has vindicated Mr President!

Soon and very soon, Nigerians would begin to appreciate the efforts of Mr President in sanitizing the economic system.

Those who would want the rot in the system to continue unchecked are all up in arms against the Asiwaju because he is "putting sand-sand for their garri".

Lo and behold!

Tinubu remains unfazed as he continues to take Nigeria to its rightful place amongst the comity of nations.

Most armchair critics think piloting the affairs of a complex country like Nigeria is "moi-moi"

Ask them how easy it has been in managing even their own homes and you will find some telling you that some of their daughters are into runs while their sons are into armed robbery and sundry criminal acts.

The Jagaban of the universe himself!

The Lee Kuan Yew of Nigeria!

Abeg, carry go!


Patriotic Nigerias are solidly behind you in our collective journey to El Dorado!



@hotseat