Central African Rep Country Summary
Sanctions
High Concern
FATF AML Deficient List
Low Concern
Terrorism
Medium Concern
Corruption
High Concern
US State ML Assessment
Low Concern
Criminal Markets (GI Index)
High Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Central African Republic is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in the Central African Republic was undertaken in 2023. According to that Evaluation, the Central African Republic was deemed Compliant for 3 and Largely Compliant for 11 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness Compliance ratings.
Sanctions
As a UN member, this country must adhere to sanctions imposed by the UN Security Council to maintain international peace and security. Since 1966, the Security Council has established 31 sanctions regimes, which include economic sanctions, arms embargoes, and travel bans, focusing on various global threats. Currently, there are 15 ongoing sanctions regimes aimed at political settlements, nuclear non-proliferation, and counter-terrorism, with a Consolidated List of individuals and entities affected by these measures.
The UN views sanctions as part of a broader strategy for peace, rather than purely punitive actions. Recent measures include lifting the arms embargo on the Central African Republic while enforcing strict prohibitions on arms exports and asset freezes for listed individuals. The U.S. has specific policies regarding defense articles and assistance to the Central African Republic, allowing certain exceptions for humanitarian and security purposes.
Bribery & Corruption
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 24 |
| World Bank: Control of Corruption Percentile Rank | 9 |
Corruption poses a significant risk for companies in the Central African Republic (CAR), especially following the political instability and violence that ensued after the 2013 government coup. The pre-existing corruption issues have worsened, contributing to the state's fragility, with bribery and extortion being widespread and impunity remaining a serious concern. Although CAR has ratified the United Nations Convention Against Corruption, efforts to combat corruption are largely ineffective.
Economy
The Central African Republic has a predominantly agrarian economy, with agriculture accounting for a significant portion of its GDP. Despite its rich natural resources, including diamonds and gold, the country remains one of the poorest globally, struggling with high unemployment and low GDP per capita due to ongoing conflict and instability.
The investment climate in the Central African Republic is hindered by ongoing civil unrest and inadequate infrastructure, resulting in a low ranking for ease of doing business. Foreign investors face significant barriers, including regulatory challenges and security concerns, which are exacerbated by political instability and corruption. Although the country possesses rich mineral resources, the potential for investment remains limited due to these persistent challenges.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
