South Africa, Nigeria, and Two Others Expected to Exit FATF Grey List in October

South Africa, Nigeria, Burkina Faso, and Mozambique are set for FATF grey list removal, boosting economic sentiment and credibility.

As early as October 24, South Africa, Nigeria, Burkina Faso, and Mozambique may be removed from the Financial Action Task Force’s (FATF) grey list after showing major progress in combating illicit financial flows. FATF experts from Paris recently carried out on-site reviews and confirmed that reforms are substantial and sustainable.

The move could restore investor confidence, as greylisting often deters global investors and reduces capital inflows. South Africa’s FTSE/JSE banking index already edged higher after reports of potential removal.

Analysts note that while short-term market impact may be modest, long-term benefits include improved credibility, stronger capital flows, and reduced risk perception. The final FATF decision will be made in Paris, with consensus required among key members including the U.S., U.K., EU, China, Japan, and India.