Nigeria’s FATF Grey List Exit: SEC Warns Operators — “This Is Just the Beginning”
Nigeria’s recent removal from the Financial Action Task Force (FATF) Grey List has sparked renewed attention from the Securities and Exchange Commission (SEC), which is now urging all capital market operators to intensify compliance efforts to protect the country’s global financial reputation.
Speaking at the Nigerian Capital Market Institute Compliance Summit, SEC Director-General Dr. Emomotimi Agama described the moment as pivotal for Nigeria’s financial future.
Why the Grey List Exit Matters
According to Agama, Nigeria’s exit from the FATF Grey List is more than a routine update — it is a strong global endorsement that the country is committed to improving its Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks.
This achievement was possible because of collaboration between public and private sectors, including regulators, market operators, and compliance experts.
But Agama issued a warning:
“Exiting the grey list is not the finish line; it is the starting block for a new race. The world is watching.”
Global investors and financial institutions will continue to track Nigeria’s progress to ensure these reforms are consistent and long-lasting.
SEC’s Key Message to Market Operators
Agama stressed that Nigeria must shift from reactionary compliance to proactive, long-term adherence to global financial standards.
He highlighted several action points:
1. Compliance is now a competitive advantage
Beyond meeting legal requirements, strong compliance boosts:
• Investor confidence
• Market stability
• Nigeria’s attractiveness to global capital
A transparent, accountable market signals that the country is:
“Open for business, safe, secure, and sophisticated.”
2. Adoption of modern regulatory technologies
Operators should begin integrating:
• RegTech
• SupTech
to enhance monitoring, reporting, and compliance efficiency.
3. Stronger internal systems and ethical culture
Continuous training and ethical practices must become part of institutional culture across the financial industry.
4. SEC will intensify oversight
Agama assured stakeholders that the Commission will:
• Provide clear regulatory direction
• Offer constructive oversight
• Engage industry participants
• Closely monitor regulatory filings
Operators who fail to comply risk sanctions.
New Investment and Securities Act (ISA) 2025: What Operators Must Note
The SEC’s Executive Commissioner for Legal & Enforcement, Ms. Frana Chukwuogor, emphasized a key challenge:
Many operators struggle to comply simply because they are not aware of the new provisions.
She noted:
“How can you be compliant if you don’t know what has changed?”
The summit therefore aims to:
• Explain new ISA 2025 provisions
• Identify emerging risks
• Address issues like Ponzi schemes and digital asset regulation
She reminded participants that Nigeria’s grey list removal in October is a call to stay vigilant to avoid backsliding.
The Bigger Picture
Nigeria’s goal is not merely to remain off the grey list but to become one of the most resilient and compliant emerging markets globally.
Market operators, regulators, and compliance officers must therefore work collectively to future-proof the Nigerian capital market and uphold global confidence.
Nigeria’s recent removal from the Financial Action Task Force (FATF) Grey List has sparked renewed attention from the Securities and Exchange Commission (SEC), which is now urging all capital market operators to intensify compliance efforts to protect the country’s global financial reputation.
Speaking at the Nigerian Capital Market Institute Compliance Summit, SEC Director-General Dr. Emomotimi Agama described the moment as pivotal for Nigeria’s financial future.
Why the Grey List Exit Matters
According to Agama, Nigeria’s exit from the FATF Grey List is more than a routine update — it is a strong global endorsement that the country is committed to improving its Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks.
This achievement was possible because of collaboration between public and private sectors, including regulators, market operators, and compliance experts.
But Agama issued a warning:
“Exiting the grey list is not the finish line; it is the starting block for a new race. The world is watching.”
Global investors and financial institutions will continue to track Nigeria’s progress to ensure these reforms are consistent and long-lasting.
SEC’s Key Message to Market Operators
Agama stressed that Nigeria must shift from reactionary compliance to proactive, long-term adherence to global financial standards.
He highlighted several action points:
1. Compliance is now a competitive advantage
Beyond meeting legal requirements, strong compliance boosts:
• Investor confidence
• Market stability
• Nigeria’s attractiveness to global capital
A transparent, accountable market signals that the country is:
“Open for business, safe, secure, and sophisticated.”
2. Adoption of modern regulatory technologies
Operators should begin integrating:
• RegTech
• SupTech
to enhance monitoring, reporting, and compliance efficiency.
3. Stronger internal systems and ethical culture
Continuous training and ethical practices must become part of institutional culture across the financial industry.
4. SEC will intensify oversight
Agama assured stakeholders that the Commission will:
• Provide clear regulatory direction
• Offer constructive oversight
• Engage industry participants
• Closely monitor regulatory filings
Operators who fail to comply risk sanctions.
New Investment and Securities Act (ISA) 2025: What Operators Must Note
The SEC’s Executive Commissioner for Legal & Enforcement, Ms. Frana Chukwuogor, emphasized a key challenge:
Many operators struggle to comply simply because they are not aware of the new provisions.
She noted:
“How can you be compliant if you don’t know what has changed?”
The summit therefore aims to:
• Explain new ISA 2025 provisions
• Identify emerging risks
• Address issues like Ponzi schemes and digital asset regulation
She reminded participants that Nigeria’s grey list removal in October is a call to stay vigilant to avoid backsliding.
The Bigger Picture
Nigeria’s goal is not merely to remain off the grey list but to become one of the most resilient and compliant emerging markets globally.
Market operators, regulators, and compliance officers must therefore work collectively to future-proof the Nigerian capital market and uphold global confidence.