Financial Watchdog Puts South Africa, Nigeria on Dirty-Money Gray List

  • Decision was announced by the Financial Action Task Force
  • Inclusion may raise costs for banks and asset managers

Johannesburg, South Africa.

Photographer: Waldo Swiegers/Bloomberg
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South Africa and Nigeria have been placed on a global financial watchdog’s so-called gray list denoting nations with shortcomings in tackling illicit financial flows, a move that scars their international reputations and may raise costs for banks and asset managers.

The decisions were announced by the Financial Action Task Force on Friday. While South Africa’s inclusion on the list was widely flagged as a risk, the possible addition of Nigeria attracted little attention. Morocco and Cambodia were taken off the list after improving their controls.