In a significant boost to Africa’s financial integrity and investment appeal, the European Union (EU) has removed Nigeria, South Africa, Burkina Faso, and Mozambique from its list of High-Risk Third Country Jurisdictions.
The decision, announced on January 9, 2026, and effective from January 29, 2026, follows a similar move by the Financial Action Task Force (FATF), which removed the countries from its grey list in October 2025.
The delisting marks a major turning point for the affected nations, meaning that financial transactions between them and the EU will no longer be subjected to enhanced due diligence requirements.
This development is expected to significantly lower compliance costs for banks, facilitate smoother cross-border trade, and restore foreign investor confidence.
Under EU law, financial institutions are required to apply rigorous checks, request additional documentation, and seek senior management approval for transactions involving high-risk jurisdictions. These measures have historically restricted financial flows and deterred foreign direct investment (FDI).
The EU Commission stated that the delisted countries had “strengthened the effectiveness of their Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) regimes and addressed technical deficiencies,” signalling renewed confidence in their regulatory oversight. Mali and Tanzania were also cleared from the list in this latest update.
The EU’s move validates the earlier decision by the Paris-based FATF, the global watchdog for money laundering and terrorist financing. At its plenary meetings in October 2025, the FATF confirmed that Nigeria, South Africa, and others had successfully addressed the strategic deficiencies in their financial frameworks.
Elisa de Anda Madrazo, FATF President, described the October outcome as a positive story for the continent of Africa, noting that the body seeks to strengthen global defenses against financial crime with each plenary.
Nigeria, Africa’s most populous nation, had been placed under increased monitoring in February 2023. Its removal reflects successful reforms in inter-agency coordination, financial supervision, and the prosecution of illicit financial flows.
Similarly, South Africa, which was greylisted in 2023, along with Mozambique (2022) and Burkina Faso (2021), demonstrated robust improvements in financial intelligence sharing and institutional oversight.
South Africa’s National Treasury welcomed the development, noting that its inclusion on the EU list had been an automatic procedural consequence of the initial FATF greylisting. With both designations now lifted, these African economies are poised for improved integration into the global financial system.
