14 African countries on the FATF ‘dirty money’ watchlist in 2025

When countries are added to the FATF grey list, they are not completely under sanctions but are classified as jurisdictions under increased monitoring.

It means these nations are under scrutiny and must implement reforms to address gaps in their financial crime prevention measures.

As of February 2025, 24 countries were listed on the FATF grey list, with 14 of them from Africa, including Kenya, Namibia, Nigeria, and South Africa among others.

Countries on the grey list typically show a strong political will to reform, and many successfully implement improvements and exit the list within a five-year period.

Some African countries have made considerable progress in addressing these deficiencies and have successfully exited the grey list over the years, demonstrating a commitment to improving their financial crime prevention systems.

Ghana exited the FATF grey list in 2021 after successfully addressing its AML/CFT deficiencies and meeting strict deadlines.

Uganda followed in February 2024, demonstrating improvements in its anti-money laundering and counter-terrorism financing systems. Senegal was also removed from the grey list in October 2024 after three years in recognition of its substantial progress,

Nigeria aims to be removed from the grey list by 2025, with progress in combating terrorism financing and money laundering.

South Africa is working to be removed by June 2025, having addressed eight of 22 FATF requirements, with plans to resolve all deficiencies by February 2025.

Although grey listing does not come with immediate penalties, it can significantly damage a nation’s economy and reputation, negatively affecting its financial sector and access to international aid.

The most severe consequence for persistently non-compliant countries is potential blacklisting, which results in mandated sanctions and further reputational damage.

According to a 2021 IMF report, grey listing can lead to a 7.6% decline in capital inflows as a percentage of GDP.

Financial institutions may choose to “de-risk” by severing business ties with these nations, leading to higher compliance costs and increased risks.

This, in turn, can make it harder for individuals and businesses to access essential financial services, reducing financial inclusion.

Additionally, these countries may see a rise in the use of less regulated money transfer channels, further undermining efforts to combat financial crimes.

As of early 2025, the following African countries are still listed on the FATF grey list, which highlights jurisdictions under increased monitoring for deficiencies in anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks:

These countries are required to implement reforms to strengthen their financial crime measures or face the risk of further economic and reputational damage.