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INTRODUCTION
The European Union (‘EU') has removed Nigeria from its list of high-risk third countriesfor money laundering and terrorism financing. This development follows Nigeria's removal from the Financial Action Task Force (‘FATF') grey list in 2025 and reflects the EU's alignment with recent FATF determinations. According to the European Commission, the update reflects decisions taken at the FATF's June and October 2025 plenary meetings, during which several countries were removed from the list of “Jurisdictions under Increased Monitoring.”1
The European Commission confirmed that Nigeria has substantially enhanced the effectiveness of its AML/CFT framework and has adequately remedied the technical and strategic deficiencies identified by the FATF.
WHAT THIS MEANS FOR NIGERIAN BUSINESSES AND INVESTORS
The removal is expected to reduce compliance costs and transaction delays for Nigerian-related EU transactions, ease correspondent banking and payment processing and improve the operating environment for Nigerian banks, exporters, fintechs, and businesses engaging with European partners.
The EU's decision further reinforces Nigeria's progress in financial system reforms and efforts to combat money laundering and terrorism financing. These developments are likely to support smoother remittance channels and stronger investor confidence.
Footnote
1 European Commission Removes Nigeria from EU AML/CFT High-Risk List https://finance.gov.ng/nigeria-welcomes-europeancommissions-removal-of-the-country-from-eu-aml-cft-high-risk-list/
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