FATF praises Nigeria for progress on anti-money laundering, terror financing reforms
Nigeria has received international recognition from the Financial Action Task Force (FATF) for making meaningful progress in the implementation of its Action Plan designed to strengthen the country’s fight against money laundering, terrorism financing, and related financial crimes.
A statement from the Nigerian Financial Intelligence Unit (NFIU) yesterday said the recognition was granted during the FATF’s recently concluded plenary meeting held in Strasbourg, France.
The acknowledgment marks a critical step forward in Nigeria’s efforts to be removed from the FATF grey list—a status that indicates a country is under increased monitoring due to strategic deficiencies in its anti-money laundering and counter-financing of terrorism (AML/CFT) frameworks.
The FATF Action Plan outlines a series of key reforms Nigeria must undertake, including strengthening the legal framework, improving the effectiveness of the Nigerian Financial Intelligence Unit (NFIU), ensuring robust supervision of financial institutions, and enhancing cooperation with law enforcement agencies.
Other components involve adopting a risk-based approach, promoting public awareness and training, improving international cooperation, and strengthening mechanisms for monitoring and reporting.
In response to the FATF commendation, the NFIU said the development clears the path for the FATF Africa Joint Group to conduct an on-site visit. This upcoming mission will assess whether the reforms introduced are functioning as intended, have political backing, and are sustainable in the long term.
The NFIU also noted that Nigeria has made marked improvements in several key areas, including “the conduct and regular updating of national risk assessments, increased transparency around beneficial ownership information, and the implementation of risk-based supervision across both financial and non-financial sectors.”
According to the NFIU, this progress is a testament to Nigeria’s commitment not only to exit the grey list but also to build a resilient AML/CFT regime capable of protecting the integrity of the national financial system and bolstering economic stability.
“With the on-site visit phase approaching, it is essential that all stakeholders maintain the momentum and ensure that the reforms are not only sustained but also deeply embedded across all institutions,” the NFIU said in a statement.
The NFIU, which serves as the national coordinator for the FATF’s International Cooperation Review Group (ICRG) process and Secretariat of the Inter-Ministerial Committee on AML/CFT/Counter-Proliferation Financing (CPF), commended the collective effort by all arms of government and other key players in Nigeria’s financial ecosystem.
It appreciated President Bola Ahmed Tinubu for providing the necessary leadership, and to members of the Federal Executive Council—particularly the Attorney-General of the Federation and Minister of Justice, the Minister of Finance and Coordinating Minister of the Economy, and the Minister of the Interior—for their roles in ensuring that the FATF Action Plan was swiftly implemented.
The NFIU also recognized the heads of critical institutions including the judiciary, law enforcement agencies, regulators, and private sector stakeholders, whose input has helped Nigeria better detect, investigate, and prosecute complex financial crimes.
As part of its continuing responsibility, the NFIU reaffirmed its commitment to offering strategic direction and coordination to ensure full compliance with global AML/CFT standards ahead of the upcoming FATF evaluation.
