What Grey Listing Means for Nigeria

Appearing on the Financial Action Task Force (FATF) grey list could spell disaster for a country's economy, as it discourages investment, indicates an absence of rule of law, and often results in the downgrading of the country's investment grade or rating.

The FATF announced the additions of South Africa and Nigeria to the "grey list" of countries under special scrutiny for not implementing adequate standards to prevent money laundering and terrorist financing.

The governments of both South Africa and Nigeria have given assurances that they would work closely with the task force.

This article originally appeared on AllAfrica.

Image via Financial Times.