African countries under global financial watch at the start of 2026

As global banks, investors, and development lenders tighten compliance rules in 2026, being placed on the Financial Action Task Force (FATF) grey list has become one of the most damaging reputational and financial labels a country can carry.

The grey list formally refers to “Jurisdictions under Increased Monitoring” – countries judged to have strategic weaknesses in their systems for combating money laundering, terrorist financing, and the funding of weapons proliferation.

While grey-listed states are not blacklisted, they face higher transaction costs, tougher scrutiny from correspondent banks, delayed foreign investments, and reduced access to international capital, pressures that many African economies can least afford.

At the start of 2026, eight African countries remain under increased monitoring by the FATF.

Africa’s largest gas exporter continues to struggle with weak enforcement, a cash-heavy business culture, and opaque state-owned enterprises. These factors make it difficult for regulators to fully track illicit financial flows, keeping Algeria under international scrutiny.

Cameroon’s status reflects long-standing problems with customs fraud, cross-border smuggling, and weak financial supervision. As a key trade hub for Central Africa, these weaknesses carry regional implications.

One of West Africa’s fastest-growing economies is paying a reputational price for gaps in its anti-money-laundering and counter-terrorism financing frameworks, especially given its proximity to jihadist-affected Sahel states.

The DRC’s vast mineral wealth continues to attract illicit financial flows. Weak banking controls, cash-based mining operations, and limited oversight of politically exposed persons keep the country on the FATF’s radar.

East Africa’s financial hub faces pressure over terror-financing risks, oversight of mobile-money platforms, and cross-border transfers linked to regional instability. Grey-listing complicates Nairobi’s ambition to become Africa’s leading financial centre.

Namibia’s inclusion has surprised many investors. Regulators have flagged weaknesses in beneficial ownership rules, trust accounts, and offshore-linked financial flows, raising compliance concerns for international banks.

Africa’s youngest nation remains highly exposed due to opaque oil revenues, weak institutions, and conflict-linked financial flows. Grey-listing reinforces investor concerns about corruption and governance risks.

Being placed under increased monitoring affects far more than just banks. It impacts trade finance, sovereign borrowing, remittance flows, foreign aid, and foreign direct investment.

For countries already dealing with high debt and currency pressure, FATF scrutiny can quietly become an economic chokehold.

With parts of Africa also facing geopolitical isolation, sanctions risks, and instability across the Sahel and Horn of Africa, remaining on the FATF grey list in 2026 risks pushing these economies further to the margins of the global financial system.