Nigeria Achieves Compliance In 37 Of 40 Global Anti-Money Laundering Standards

The Nigerian Financial Intelligence (NFIU) has said the country secured additional grades in its fight against terrorism financing and money laundering.

The agency disclosed this after participating at a meeting of the Group Against Money Laundering in West Africa between November 17 and 23, in Freetown, the Republic of Sierra Leone.

The development followed a 2023 report by the Financial Action Task Force (FATF) where Nigeria was grey-listed due to its deficiencies in combating money laundering, terrorism and arms financing.

Nigeria’s inclusion in the grey list had implications for the country’s international financial relations and business environment, which could deter foreign investment.

However, in a statement on Sunday, the NFIU said Nigeria has been adjudged Compliant (C) or Largely Compliant in 37 out of the 40 recommendations following her removal from the partially-compliant category.

The FATF had developed 40 recommendations that served as the international benchmark for anti-money laundering, designed to strengthen national frameworks to address money laundering and terrorism financing among others.

The statement read, “It would be recalled that Nigeria has, since its inclusion in the GIABA Enhanced Follow-Up Process in 2021, submitted three reports seeking re-rating in recommendations with Non-Compliant/Partially Compliant Rating.

“As it stands today, Nigeria is Compliant (C) or Largely Compliant (LC) in 37 out of the 40 Recommendations. To this end, member states of GIABA and international partners, including the FATF, have commended Nigeria on these efforts.

“This achievement will further strengthen the country’s mechanism in combating money laundering, terrorist financing, proliferation financing, and other predicate offences.”

The NFIU noted that the report was Nigeria’s third since the grey-listing, which was discussed at the plenary. The discussion focused on the progress of the country in addressing technical compliance deficiencies identified in its 2021 AML/CFT Mutual Evaluation

“The Follow-Up report highlighted Nigeria’s enhanced measures in anti-money laundering and counter-terrorism financing.

“The Plenary recognised the remarkable improvement in Nigeria’s legal and regulatory framework and upgraded five key recommendations from Partially Compliant to Largely Compliant.

“The recommendations upgraded include Recommendation 23 on Other Measures Relevant to Designated Non-Financial Businesses and Professionals, Recommendation 24 on Transparency and Beneficial Ownership of Legal Persons, Recommendation 25 on Transparency and Beneficial Ownership of Legal Arrangements, Recommendation 28 on Regulation and Supervision of DNFBPs and Recommendation 32 on Cash Couriers,” the statement said.