By| Goodluck E.Adubazi, Abuja
African civil society leaders, regulators, financial institutions and development partners have called for a more balanced implementation of anti-money laundering and counter-terrorism financing (AML/CFT) regulations, warning that excessive compliance measures are restricting the work of legitimate non-profit organisations (NPOs) across the continent.
The call was made at the closing ceremony of the week-long 3rd Africa High-Level Civil Society AML/CFT Conference 2026, held in Abuja under the theme: “Implementing FATF Recommendation 8 Correctly: Practices, Lessons Learned and Opportunities for Reform.”
Delivering the Ford Foundation’s goodwill message, Dr. Chi-Chi Aniagolu, Regional Director for Ford Foundation, stressed the importance of balancing national security with the protection of civic space.
According to him, while African governments must address terrorism financing, violent extremism and insecurity to foster peace, economic growth and poverty reduction, compliance measures should not unnecessarily hinder the operations of civil society organisations.
He noted that sanctions and regulatory measures often have unintended consequences on civic space and emphasized that governments, regulators, financial institutions and civil society must work together through a multi-stakeholder approach to address the complex challenges posed by AML/CFT implementation.
“We must strike a balance between compliance and maintaining an effective civic space. This conference represents the kind of collaborative approach needed to tackle these complex challenges while creating opportunities for reform,” Aniagolu said.
During a plenary session hosted by the International Center for Not-for-Profit Law (ICNL), panellists from Kenya, Mozambique, Nigeria and Zambia shared country experiences on implementing Financial Action Task Force (FATF) Recommendation 8.
Representing Zambia, Leah Mitaba of the Council for Social Development identified restrictive legislation, increased regulatory requirements and growing financial exclusion as major obstacles facing non-profit organisations.
She explained that NGOs now face stricter reporting obligations and banking requirements, making it increasingly difficult for organisations to access financial services.
Despite these challenges, Mitaba said there was growing consensus among governments, the private sector and civil society on the need for greater collaboration in implementing AML/CFT measures.
Other speakers from Central Africa warned that many countries continue to adopt blanket compliance measures instead of the risk-based approach recommended under FATF Recommendation 8.
They argued that indiscriminate classification of all NPOs as high-risk entities has resulted in financial exclusion, excessive regulatory burdens, shrinking civic space and reduced humanitarian support for vulnerable communities.
The experts also warned that over regulation disproportionately affects women-led organisations and grassroots peacebuilding initiatives that play critical roles in preventing violent extremism.
They called for broader stakeholder consultations, greater transparency in national risk assessments and stronger protection of human rights during the implementation of counter-terrorism financing measures.
Executive Director of Spaces for Change (S4C), Victoria Ibezim-Ohaeri, explained that the conference was convened to bridge the gap between regulatory reforms and their implementation by financial institutions.
She noted that Nigeria had introduced significant legal reforms in recent years, including amendments to the Money Laundering (Prevention and Prohibition) Act, which removed non-profit organisations from the category of reporting entities and eased several compliance requirements.
However, she observed that many banks continued to treat all NPOs as high-risk customers despite the reforms.
||BreakOut session Video: Featured Victoria Ibezim-Ohaeri, Executive Director, Spaces for Change – S4C amongst other penalists at the closing ceremony of the 3rd Africa High -Level Civil Society AML/CFT Conference 2026 on Thursday, 16 July, 2026 at the Abuja Continental Hotel||
“According to Ibezim-Ohaeri, many financial institutions remained unaware of Nigeria’s updated national risk assessment and the new risk categorisation framework for non-profit organisations.
She said this informed the establishment of the Multi-Stakeholder Working Group on Charities, which brought regulators, financial institutions and civil society organisations together to improve communication and promote risk-based compliance.
“The regulators had carried out the reforms, but the private sector was still operating under the old assumptions. We realised that bringing everyone together was the only way to ensure that the reforms translated into practice,” she said.
Speaking during a fireside chat, Saadat Salley, Head of Compliance and Internal Control Unit at the National Credit Guarantee Company (NCGC), stressed that government alone cannot successfully implement reforms without active participation from the private sector.
She explained that Nigeria’s National Terrorist Financing Risk Assessment for the NPO sector had identified vulnerabilities, including heavy cash transactions by some organisations operating in conflict areas.
Salley said the Multi-Stakeholder Working Group was established to educate financial institutions on the findings of the national risk assessment and the new risk classifications adopted for non-profit organisations.
She noted that the initiative aims to replace outdated assumptions with evidence-based, risk-sensitive regulation.
Also speaking during the fireside session, financial sector representatives acknowledged that banks sometimes apply excessive compliance measures because of regulatory pressure and the risk of severe sanctions.
They explained that financial institutions often deal with international correspondent banks and face significant penalties for regulatory failures, making them highly cautious when dealing with organisations perceived as high risk.
However, speakers agreed that compliance decisions should be based on individual risk assessments rather than blanket assumptions.
They urged financial institutions to move away from over-compliance and adopt a contextual, risk-based approach consistent with FATF Recommendation 8.
As the conference concluded, participants reaffirmed their commitment to strengthening cooperation among governments, regulators, financial institutions, development partners and civil society organisations across Africa.
They called for reforms that protect financial systems from abuse while safeguarding civic space, promoting human rights and enabling non-profit organisations to continue delivering essential humanitarian and development services throughout the continent.
