The Basel AML Index 2025 highlights notable strides against financial crime in Africa, even as regional risks remain elevated. The index, which ranks money-laundering risks across 177 jurisdictions on a 0-to-10 scale, finds that 70% of African states improved their scores. This surge in progress stands out especially because other regions face flat or worsening trends, suggesting that targeted reforms in Africa are beginning to bear fruit.
The Basel AML Index operates as an independent, data-driven tool that assesses money-laundering and related financial crime risks worldwide. Jurisdiction scores range from 0 (lowest risk) to 10 (highest risk) and draw on 17 publicly available sources.
Risk assessments hinge on five domains: the strength of AML/CFT/CPF frameworks; corruption and fraud; financial transparency and standards; public transparency and accountability; and legal and political risk. These areas collectively shape a jurisdiction’s overall exposure to illicit financial activity.
African leaders emerge as top improvers
Regional patterns in 2025 show mixed trajectories, with more than half of jurisdictions improving and about 43% slipping. While North America, the EU and Western Europe, Eastern Europe and Central Asia, and the Middle East and North Africa saw modest increases in average risk, several regions reported progress elsewhere. Africa, in particular, stands out for meaningful enhancements in AML/CFT/CPF framework quality, modest reductions in perceived corruption, and greater financial transparency.
Within Africa, seven of the top ten improvers come from the continent. Burkina Faso and Côte d’Ivoire notably shifted from higher risk to medium risk, signaling meaningful changes that compliance professionals and policymakers can investigate to understand what is driving reduced risk in those jurisdictions.
Among the notable lists, the top improvers include Liberia, Mozambique, Burkina Faso, Nigeria, Mali, Tanzania, and Côte d’Ivoire, while the top decliners feature Kazakhstan, Lithuania, Taiwan, Serbia, Costa Rica, Germany, and others. These shifts reflect diverse national circumstances and governance reforms at work.
FATF guidance remains a driving force
Progress in Africa aligns with tangible actions taken to address deficiencies identified by the Financial Action Task Force (FATF), the international body responsible for setting standards and monitoring countermeasures against money laundering, terrorism financing, and proliferation financing.
In 2025, six African countries—Burkina Faso, Mali, Mozambique, Nigeria, South Africa, and Tanzania—were removed from FATF’s grey list, recognizing substantial improvements in their AML/CFT/CPF frameworks following agreed Action Plans. The Basel Institute on Governance has contributed to these efforts through capacity-building initiatives and legal reform support, including targeted work in Mozambique that supported its successful removal from the grey list after a three-year program.
With FATF reviews ongoing, sustained progress remains essential. Some nations have previously exited the grey list only to slip back, underscoring the challenge of maintaining reforms. Although African countries show impressive gains, the regional average risk stays relatively high (Basel AML Index average around 6.14). Emerging threats, such as the rapid expansion of virtual asset usage for illicit purposes, mean vigilance cannot ease.
Data-driven insights for action
The Basel AML Index serves as a valuable diagnostic tool for practitioners and policymakers seeking to strengthen financial integrity. The Expert Editions (free to public sector, non-profit, and academic subscribers) offer deeper access to 203 jurisdiction indicators and a user-friendly interface for exploring the 17 indicators.
The Expert Edition Plus provides enhanced analytical features, including a detailed FATF-focused comparison, quarterly data updates, and regional and global trend analyses. Subscribing organizations receive timely FATF results summaries for newly assessed countries and early indicators of grey-list risk.
These tools are designed to support professionals aiming to fortify financial systems. The Basel Institute on Governance is glad to see the Index contributing to progress in Africa and remains available to answer questions or provide assistance. Inquiries can be directed to index@baselgovernance.org.
