African countries are intensifying measures to prevent being placed on, or returning to, the Financial Action Task Force (FATF) grey list, as regulators and policymakers call for stronger coordination and sustained political commitment to protect financial integrity. The issue took centre stage during the Afreximbank Compliance Forum held in Kigali on Wednesday, November 14.
The FATF grey list identifies countries under increased monitoring for weaknesses in their efforts to prevent money laundering and terrorist financing. While not as severe as blocklisting, the classification signals potential financial risks, prompting international banks and investors to apply stricter checks, which can make cross-border trade and access to foreign funding more difficult for businesses.
Some nations, including Nigeria, Senegal, and Côte d’Ivoire, have been on the list before successfully exiting after implementing significant reforms. However, officials warned that maintaining compliance demands long-term commitment and coordination across sectors. Highlighting how African countries can build stronger anti–money laundering and counter–terrorist financing (AML/CFT) systems while maintaining financial stability.
“It’s not enough for African countries to just follow global recommendations. Each country must take ownership, coordinate internally, and implement the standards effectively across all sectors. Compliance cannot be left to a single institution; it requires engagement from regulators, banks, and other stakeholders. Only by adapting these frameworks to our local contexts can we secure trade, protect our financial systems, and avoid being placed back on the grey list,” said Edwin W. Harris Jr., the Director General of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). Do
“GIABA has intensified its capacity-building programmes, providing member states with technical support to strengthen domestic monitoring mechanisms and prevent grey-listing. Regional cooperation and knowledge exchange are crucial, especially as compliance increasingly intersects with digital finance, fintech innovation, and cross-border transactions under the African Continental Free Trade Area (AfCFTA).”
From Nigeria’s experience, Felix Obiamalu, the General Counsel of the Nigerian Financial Intelligence Unit (NFIU), said the country’s repeated placement on the grey list served as a wake-up call that drove institutional reform.
“Nigeria has been on the grey list three times. We institutionalised reforms to ensure they outlive political cycles. Passing laws wasn’t the hardest part, but ensuring they worked in practice was,” Obiamalu said.
“Nigeria’s experience highlighted the importance of coordination across ministries and agencies, strengthening judicial oversight, and improving compliance mechanisms in both banking and non-financial sectors. The experience compelled us to institutionalise reforms and oversight processes to prevent relisting and ensure our financial system aligns with international standards.”
Idris Diop, the Compliance Director at Afreximbank, echoed that African nations can stay off the FATF grey list by strengthening regulatory frameworks and ensuring effective enforcement of anti–money laundering and counter–terrorism financing measures.
“The problem of being on the grey list is not about sanctions; it’s about not having the right regulatory framework to fight money laundering and terrorist financing. Once a country fixes those weaknesses and aligns with international standards, it can successfully exit the list,” Diop explained.
He noted that several countries, including Nigeria and South Africa, have recently been delisted after extensive reforms to strengthen monitoring systems, educate financial actors, and update legislation.
“Being off the grey list signals improvement in governance and compliance. It sends a strong message to investors that the economy is safer and more transparent. Regional cooperation through platforms like ESAAMLG remains vital for maintaining compliance,” he said.
Experts warned that even countries that successfully exit the grey list risk relapse if reforms are not institutionalised.
“The best way to exit the grey list is never to get on it. That means building capacity, coordinating across agencies, and maintaining transparency in both policy and practice. Grey-listing can slow capital inflows, raise transaction costs, and damage reputations that small economies may take years to recover from,” said Jeanne Pauline Gashumba, Director General of Rwanda’s Financial Intelligence Centre (FIC).
Beyond legislation and technical reforms, experts underscored political will as the foundation of lasting compliance. Countries that sustain progress are those where top leadership views compliance not as bureaucracy but as a national investment.
“Political commitment is the differentiator. Without leadership from the highest levels, even the best laws will remain on paper. Keeping Africa off the FATF grey list is not just a regulatory goal; it is a collective economic strategy to strengthen trust, attract investment, and secure the continent’s place in the global financial system,” Harris explained.
