South Africa, Nigeria, Mozambique, and Burkina Faso Off from FATF Grey List: October 2025 Plenary
Executive Summary:
- Removed from Grey list: 4 removals — South Africa, Nigeria, Mozambique, Burkina Faso.
- Added to Grey List: No new additions.
- Blacklist: No change.
- Rationale: Progress on AML/CFT frameworks and inter-agency coordination.
South Africa, Nigeria, Mozambique, and Burkina Faso Off from FATF Grey List: October 2025 Plenary
As part of its mandate, FATF periodically provides updates for jurisdictions under their increased monitoring colloquially known as the “FATF Grey List”. This is a list of countries with strategic deficiencies in their AML/CFT/CPF regimes and are actively working with FATF to address these deficiencies.
On 24th October 2025, the last plenary session of the year was concluded by the FATF. It brought significant changes to the status of grey listed countries. South Africa, Nigeria, Mozambique, and Burkina Faso were removed from the FATF Grey List.
The Financial Action Task Force (FATF) is a global watchdog against the crimes of Money Laundering (ML), Terrorism Financing (TF), and Proliferation Financing (PF). FATF undertakes extensive research and sets international standards to combat financial crimes. FATF has issued uniform recommendations on Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT), and Counter-Proliferation of Financing (CPF), for countries. It diligently monitors the compliance of these norms in the domestic AML/CFT/CPF framework of countries around the globe.
Updates Made to the Financial Action Task Force (FATF) Grey List on 24th October 2025
FATF Plenary October 2025: Updates made to FATF greylist mainly include removal of four countries as discussed below.
Countries Removed from FATF Grey List (Jurisdiction Under Increased Monitoring) on 24th October 2025:
- FATF removes Burkina Faso from Grey List: 24th October 2025
- FATF removes Mozambique from Grey List: 24th October 2025
- FATF removes Nigeria from Grey List: 24th October 2025
- FATF removes South Africa from Grey List: 24th October 2025
The FATF Grey List as of 24th October 2025: FATF Jurisdictions Under Increased Monitoring as of 24th October 2025
1. Algeria
2. Angola
3. Bolivia
4. Bulgaria
5. Cameroon
6. Côte d’Ivoire
6. Democratic Republic of Congo
8. Haiti
9. Kenya
10. Laos
11. Lebanon
12. Monaco
13. Namibia
14. Nepal
15. South Sudan
16. Syria
17. Venezuela
18. Vietnam
19. Virgin Islands (UK)
20. Yemen
Immediate impact of the FATF Grey List update 24th October 2025 on Regulated Entities:
As a consequence of FATF Grey List October 2025 Update, AML Compliance measures implemented by Regulated Entities need to be revised:
- Enterprise- Wide Risk Assessment (EWRA):
- Customer Due Diligence (CDD): CDD measures concerning customers or suppliers associated with “FATF defined Jurisdictions Subject to Increased Monitoring”
- AML Policies and Procedures:
- Recalibrating configuration of AML software solutions
To know more about how the FATF Grey List update triggers changes in a regulated entity’s AML/CFT/CPF compliance process, read our extensive blog on “Impact of FATF Grey List Update on UAE DNFBPs: AML/CFT Compliance Imperatives”
What will be the Implications of FATF Greylisting on the British Virgin Islands (BVI)?
Due to the greylisting of British Virgin Islands (BVI) by FATF, the costs associated with financial transactions originating from and destined to BVI would increase. Further, the businesses would experience slight delays in the processing of transactions by banks as banks and financial institutions adopt a risk-based approach while dealing with high-risk jurisdictions like Virgin Islands (UK).
The obligated entities will have to assess the BVI greylisting impact on its Enterprise-Wide ML/FT risk assessment, take a risk-based approach and align policies and procedures with the revised EWRA.
The reporting entities would also need to change their internal processes in relation to transaction monitoring and customer risk assessment, consequent to the greylisting of BVI.
Further, the BVI-based entities will have to adopt suitable measures to ensure that they have accurate beneficial ownership information about their clients.
How Does Bolivia’s Inclusion on the FATF Grey List Countries 2025 Impact Its Virtual Asset Sector?
The Virtual Asset Sector in Bolivia would be subjected to stringent ML/FT controls consequent to Bolivia’s greylisting by FATF on 13th June 2025. The government would try to bring in a stringent regulatory framework and stricter supervision of crypto exchanges and crypto assets wallet providers. The obligated entities will have to strengthen their CDD, transaction monitoring, and suspicious transaction monitoring-related controls and have a more comprehensive process for the ultimate beneficial owner identification.
This would result in increased compliance costs for VASPs based out of Bolivia. Banks and financial institutions would adopt a risk-based approach and decide to go for de-risking the relationship.
Due to Bolivia’s inclusion on the FATF Grey List countries 2025, the international businesses dealing with Bolivia in sectors like virtual assets, trade finance, money exchange, and precious metals and stones will reassess their risk, and the Bolivia-based businesses might have to undergo EDD measures.
What Does Removal from the FATF Grey List Mean for Croatia?
Consequent to the removal of Croatia from FATF’s grey list (the list of jurisdictions under increased monitoring), it would benefit Croatia’s economy, and Croatia’s financial institutions will have greater access to international correspondent banking and can resort to relaxed norms around customer due diligence.
The international businesses dealing with Croatia will take a risk-based approach, and they will be exposed to lower compliance risks while dealing with Croatia-based entities. It would make transaction processing faster as there would be reduced customer diligence requirements, and it would improve investor confidence.
Croatia’s successful removal from grey list shows its commitment to following a methodical, transparent, and sustained effort to comply with and implement FATF recommendations.
Action Plan for Regulated Entities Consequent to Changes in Financial Action Task Force Grey List dated 24th October 2025
– Conduct Enterprise-Wide Risk Assessment and assess the likelihood of ML/TF risks arising from the exposure to the latest FATF Grey List countries.
– Revise risk matrices to flag
- South Africa
- Nigeria
- Mozambique
- Burkina Faso
related profiles to appropriate risk ratings while considering other risk factors applicable.
– Ensure Enhanced Due Diligence (EDD) is applied to the customers or suppliers associated with the “FATF defined Jurisdictions subject to increased monitoring”.
– Update internal AML Policies and Procedures to reflect the material changes of FATF Grey List
– Recalibrate the configuration of AML software solutions in proportion with the FATF Grey List updates
– Ensure that screening and submission of Regulatory Reports capture elevated or diluted risks associated with the Grey-Listed countries and mandate escalation as per the updated list.
– Conduct structured training sessions for the employees to educate them with updated procedures for dealing with the customer.
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