Nigeria’s Removal from FATF Grey List Not a Guarantee Against Future Relapse
The Director of the Lagos Business School Public Sector Initiative, Professor Franklin Ngwu, has cautioned that Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list does not guarantee that the country will not be relisted in the future. Ngwu made this statement during an interview on Arise Television, emphasizing the need for deep reforms to prevent a relapse.
The FATF had previously placed Nigeria on its grey list due to deficiencies in the country’s anti-money laundering and counter-terrorist financing frameworks. Although Nigeria has taken corrective measures to address these issues, resulting in its removal from the list, Ngwu noted that the country’s performance in recent years regarding money laundering and corruption has been subpar.
According to Ngwu, Nigeria’s history of struggling with money laundering and corruption led to its initial placement on the grey list. He stressed that while the country’s removal is a positive development, it is crucial to implement lasting reforms to prevent a recurrence. The FATF grey list comprises countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing regimes, which pose a risk to the international financial system.
Ngwu’s comments highlight the importance of sustained efforts to strengthen Nigeria’s financial regulatory framework and combat corruption. The country’s removal from the grey list is a significant step forward, but it is essential to build on this progress by implementing robust measures to prevent money laundering and terrorist financing. By doing so, Nigeria can ensure that it remains off the grey list and maintains its integrity in the global financial community.
The FATF’s decision to delist Nigeria is a welcome development, but it also serves as a reminder of the need for continued vigilance and reform. As Nigeria moves forward, it is crucial to prioritize the implementation of effective anti-money laundering and counter-terrorist financing measures to prevent a relapse and maintain its position in the global financial system.