Benin Country Summary

FATF Status

Benin is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Benin was undertaken in 2023. According to that Evaluation, Benin was deemed Compliant for 7 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.

Benin has established laws to combat corruption and has made progress in addressing common corruption issues, although challenges remain. The Haut-Commissariat a la Prevention de la Corruption (HCPC) leads efforts against corruption, with the authority to refer cases to court, while the State Audit Office also plays a role in identifying corruption in the public sector. Despite the legal framework, enforcement of anti-bribery laws is inconsistent, and foreign companies have raised concerns about biased procurement processes.

Benin's economy has shown positive macroeconomic conditions, with GDP growth projected to accelerate to 7% in 2022, driven primarily by port activity and the cotton sector. The economy is composed of approximately 51% services, 26% agriculture, and 23% manufacturing, with a significant informal sector contributing to economic activity. The government is actively pursuing private investment through initiatives like the $20.6 billion Government Action Plan, which aims to create jobs and improve living conditions across various sectors.

Benin's investment climate is characterized by efforts to attract private investment, particularly through the Investment and Exports Promotion Agency (APIEX), which aims to reduce administrative barriers and facilitate new investments. Despite some progress, challenges remain, including reports of high-level corruption and bureaucratic inefficiencies that can hinder foreign investment. The government has initiated a $20.6 billion action plan to boost economic growth, with significant projects like the Glo-Djigbé Industrial Zone expected to enhance export revenues and create jobs.