Four African countries, namely Nigeria, South Africa, Mozambique and Burkina Faso, have been removed from the Financial Action Task Force (FATF) list of jurisdictions under increased monitoring following successful reforms to combat illicit financial flows.

The decision was made at the conclusion of the fourth FATF Plenary meeting under the Mexican presidency of Elisa de Anda Madrazo, held in Paris from October 23 to 25.

The FATF is a global watchdog that sets international standards to prevent money laundering, terrorist financing and the financing of weapons proliferation.

The four nations were previously on the so-called “grey list,” a designation for countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.

Their removal shows that each has completed agreed Action Plans to improve compliance, oversight and enforcement mechanisms.

The FATF congratulated the countries for their “positive progress” and confirmed that on-site visits had validated their reforms.

Burkina Faso and Nigeria will continue to work with the Intergovernmental Action Group against Money Laundering in West Africa (GIABA), while Mozambique will maintain engagement with the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

South Africa, as a FATF member, will coordinate further efforts directly with the FATF alongside ESAAMLG.

The move is seen as a significant step forward for these African economies, potentially improving investor confidence, easing cross-border transactions, and reducing costs of financial compliance.

In addition to removing the four countries from increased monitoring, the FATF also approved new guidance on asset recovery and warned of emerging risks from artificial intelligence and deepfakes.

The Plenary included over 200 jurisdictions and observers. It marked Nigeria’s first participation in plenary discussions under the FATF’s Guest Initiative, aimed at deepening engagement with Africa.