FATF status

Liberia 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 Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Liberia was undertaken in 2023. According to that Evaluation, Liberia was deemed Compliant for 3 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Liberia has established laws to combat corruption, but their ineffective implementation and lack of non-discriminatory application hinder progress, particularly affecting public officials and their associates. Corruption is pervasive in both public and private sectors, deterring foreign investment and contributing to economic instability. Despite Liberia's commitments to international anti-corruption conventions, rampant corruption persists, with numerous sanctions imposed on officials for bribery and abuse of power, yet no formal investigations have followed.

Liberia's economy, heavily reliant on natural resources such as mining, agriculture, and forestry, has been gradually recovering since the end of civil wars in 2003, but it still struggles to reach pre-war economic levels. The GDP remains among the lowest globally, although growth was recorded at 4.7 percent in 2023, with projections of 5.3 percent for 2024. Corruption, inadequate infrastructure, and a reliance on imports for basic necessities continue to impede economic development.

Liberia presents investment opportunities primarily in natural resources such as mining, agriculture, and forestry, alongside sectors like energy and telecommunications. However, the investment climate is hindered by significant challenges, including pervasive corruption, a lack of infrastructure, and a weak legal framework, which deter foreign investment. Despite these obstacles, the new government has pledged to improve the investment environment by reducing corruption and establishing more predictable business policies.