Chief Operating Officer, DataPro Limited, Mr. Oladele Adeoye, speaks on implications of Nigeria’s exit from the Financial Action Task Force grey list, saying the development will restore global confidence in the financial system, boost foreign investment and international trade relations, among others. Festus Akanbi brings the excerpts:

What does Nigeria’s recent exit from the FATF grey list signify for the country’s financial system and overall credibility in the global financial community?

Exiting the FATF grey list is a historic milestone for the country’s financial system and overall credibility in the global financial community. This achievement echoes the discipline towards reforms, strong institutional coordination, and an unwavering commitment to adopting and sustaining global financial standards. Being delisted from the grey list restores the reputation of our great country, signalling to international communities and investors that the country is now a trusted and compliant financial jurisdiction.

From a compliance and risk management standpoint, what specific reforms or institutional improvements made Nigeria’s delisting possible?

It is not a coincidence that Nigeria exited the FATF Grey list. A lot of commitment went into ensuring that the 9-point Action Plan was dispensed with. Specifically, issues relating to a risk-based approach to AML/CFT/CPF in Nigeria, and more emphasis was placed on creating awareness about AML/CPF  and ensuring risk-based monitoring of the Non-profit organisations that are susceptible to Terrorist Financing. In furtherance of this, the Special Control Unit against Money Laundering (SCUML) convened a meeting with the major stakeholders of the NPO and Designated Non-Financial Businesses and Professions in May 2025 to create awareness about the risk of AML/CFT/CPF associated with such sector and counter measures were discussed during the engagement.

Similarly, Nigeria established the Money Laundering (Prevention and Prohibition) Act, 2022, the Terrorism (Prevention and Prohibition) Act, 2022, and the Proceeds of Crimes (Recovery and Management) Act, 2022, and also conducted national and sectoral risk assessment with mitigating measures to satisfy the requirements of the FATF.

CBN, in its commitment to see Nigeria exit the grey List, also rolled out guidelines on Politically Exposed Persons, Suspicious Transaction Report, Suspicious Activities Report.

All these show that a whole lot went into the project.

 How do you assess the role of Nigeria’s private sector, especially financial institutions and DNFBs, in achieving FATF compliance milestones?

Since the Nigerian Financial Intelligence Unit (NFIU) rolled out its Suspicious Transaction Reporting (STR) guidelines, and the Central Bank of Nigeria (CBN) followed with rigorous compliance regulations, AML/CFT/CPF compliance has been mandatory for financial institutions and DFNBPs. Regulatory Institutions like the SEC and NAICOM were also swift in issuing appropriate regulations for their immediate constituencies. These guidelines and regulations influenced banks and other financial institutions to strengthen their anti-money laundering (AML) controls, enhance transaction monitoring, and ensure the timely reporting of suspicious activities. The implication of this is that indirectly, the private sector worked assiduously toward the cause of exiting the Grey List.

Beyond regulation, NFIU, in collaboration with the British High Commission, has launched a public-private partnership (PPP) programme to bring together private sector players and public institutions to jointly combat money laundering and terrorist financing. This innovative partnership promotes information sharing, builds investigative capacity, and fosters coordinated action across sectors.

It is glaring that the exit was not based on the commitment of the government institution alone, but also on the collaboration of private institutions. 

What are the immediate and long-term economic benefits that Nigeria can expect from this development, particularly in terms of foreign investment, trade, and correspondent banking relationships?

Getting off the FATF grey list is a massive win for Nigeria, and I’m seeing the benefits play out in real time from a compliance perspective.

Right now, the immediate impact is that correspondent banks are not going to be treating every Nigerian transaction like a potential red flag anymore. Before delisting, we were subject to enhanced due diligence on practically everything, including extra documentation, longer processing times, and higher fees. That is already starting to ease up. Foreign investors who were previously hesitant now view Nigeria as less risky, leading them to be more willing to engage. Trade finance will move faster, and we could be closer to making our $1 billion monthly diaspora target set by the CBN governor.

In the long term, this opens up serious opportunities. We will have better access to international capital markets and stronger correspondent banking relationships, which would expand what Nigerian businesses can do globally. The work that has gone into strengthening our AML/CFT/CPF frameworks is not just to tick the box but to build a system that actually works and could be trusted by international partners.

Henceforth, we are expecting to see more foreign investment flowing in, lower borrowing costs, and genuine growth in cross-border partnerships.

In your view, what were the most critical lessons Nigeria learned from its period on the grey list, and how can those lessons help strengthen the country’s AML/CFT architecture going forward?

Honestly, without robust and risk-based supervision of financial institutions and designated non-financial businesses and professions (DNFBPs), vulnerabilities will persist. The FATF review showed that inconsistent enforcement and gaps in reporting standards are a threat to the integrity of our financial system and economy. By updating regulations, our compliance monitoring is expanded, and capacity building is enhanced to ensure all sectors are held accountable.

Some analysts warn that countries often slip back onto the grey list due to regulatory complacency. What proactive measures should Nigeria adopt to prevent such a relapse?

Getting off the grey list is not hard. Staying off it is where the real work lies. Efforts can fade because the pressure from the international space is off. And to avoid sliding back, we must ensure that the cooperation between NFIU, EFCC, CBN, and other regulators that got us delisted needs to become standard operating procedure. The systems have to stay responsive and consistent. When there is a proactive measure from the regulator to enforce the requirements of the laws and regulations, institutions would also sit up. Similarly, we need to bring the private sector deeper into this fight. Banks and fintech are on the front lines. NPOs and Casinos are still far from the realities of compliance. More attention needs be paid to those sectors.

If we treat exit as a destination, we may land on that black list instead of grey, but with proactive steps and effective enforcement of laws and regulations, we will not just stay off the list; there will be trust and accountability in the financial sector.

How should regulators like the CBN, NFIU, and EFCC deepen collaboration with private compliance professionals to ensure continuous improvement in financial transparency and integrity?

Regulators can ensure collaboration with private compliance professionals by riding on the PPP approach that has been adopted by the NFIU and the British High Commission, just like the public and private partnership the Nigeria Data Protection Commission has adopted where in, independent Data Protection Compliance Organsiation not only conduct compliance audit for the data controllers/processors, but also becomes the extensions of the eyes of the regulators. Periodic stakeholders engagement and capacity-building initiatives is key. 

This includes ongoing training programmes and timely dissemination of updates on evolving AML/CFT/CPF regulations to equip compliance teams with current knowledge and best practices, including private sector representatives in advisory groups, and also giving wings to Civil Society Organisations for the fight against Money Laundering would ensure that regulations are aligned with operational realities.

Finally, how can capacity building and technology-driven compliance, especially through RegTech and data analytics, help sustain Nigeria’s FATF-compliant status and boost investor confidence?

The truth is, regulations are constantly evolving, and if your team is not keeping up with the latest trends and regulations, you are already behind. I have seen too many compliance officers who learned AML basics years ago and have not updated their knowledge since. Continuous training on new typologies, emerging risks like crypto-related laundering, or changes in FATF standards keeps us sharp. That is where DataPro also comes in. We have periodic master classes for compliance officers and senior management with a strategic venue outside Nigeria to facilitate learning. When your staff can actually recognize red flags and understand why certain transactions are suspicious, not just following a checklist, that is when compliance becomes effective. Not just that, when there is a tone at the top fueled by knowledge of the emerging regulatory and compliance risk and trends, then it won’t be difficult to get management buy-in in compliance-related matters.

Furthermore, compliance based on a manual and mechanical approach is not an option in this age.

 AI and machine learning tools can spot patterns and anomalies that a human analyst would miss or take weeks to find. However, technology alone is not the answer. There is still a need to train people to use these tools, interpret the results, and take appropriate action. Hence, investing in both our people and our technology creates a compliance environment that is not just about avoiding FATF’s grey list but building a sustainable system on transparency and accountability to keep the credibility of the Nigerian economic space in the optics of the global community.