In a significant move towards financial transparency, Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), announced that consultations are ongoing “at the highest levels” to remove Nigeria from the Financial Action Task Force’s (FATF) grey list. This anti-money laundering watchlist has been a critical focus for Nigeria since its inclusion on February 24, 2024, alongside South Africa.
The FATF grey list subjects countries to increased monitoring, requiring them to intensify efforts to combat money laundering and terrorism financing. Inclusion on this list signifies a commitment to swiftly resolve identified strategic deficiencies within agreed timeframes.
Speaking to journalists in Washington DC during the annual meetings of the International Monetary Fund (IMF) and the World Bank, Cardoso emphasized the importance of this issue. “We are consulting at the highest levels to remove Nigeria from the FATF grey list, a key topic in our recent engagement,” he stated.
This development follows the Nigerian Financial Intelligence Unit’s (NFIU) announcement that FATF had approved Nigeria’s fourth progress report since being placed under watch. The approval marks a step forward in Nigeria’s efforts to enhance financial transparency and compliance with international standards.
Achievements in Monetary Policy
Reflecting on his tenure, Cardoso highlighted the CBN’s focus on addressing inflation, restoring investor confidence, and stabilizing the exchange rate. “Since assuming office a year ago, our team has concentrated on these critical areas,” he said.
The CBN has also prioritized enhancing financial systems provision, fostering financial inclusion, and improving transparency in monetary policy decisions and communications. “We embarked upon bold and necessary reforms to return to the path of monetary policy orthodoxy and remove distortions in the foreign exchange market,” Cardoso explained.
These efforts have yielded significant progress. Volatility in the foreign exchange market has decreased, and remittances have increased substantially. “We have achieved increased transparency and improved overall supply in the foreign exchange market, leading to reduced arbitrage and speculative activities,” he noted.
Commitment to Financial Stability
On October 8, the CBN reaffirmed its commitment to maintaining a stable financial system and ensuring the safety of depositors’ funds. The introduction of an electronic foreign exchange matching system (EFEMS) aims to reduce speculative activities, eliminate market distortions, and enhance the CBN’s oversight capabilities.
Cardoso’s leadership and the CBN’s proactive measures underscore Nigeria’s dedication to financial reform and transparency. As consultations continue, the goal of exiting the FATF grey list remains a top priority, promising a more robust and transparent financial future for Nigeria.
