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 some progress, particularly through the Haut-Commissariat à la Prévention de la Corruption (HCPC), which addresses various forms of corruption and economic crimes. Despite these efforts, enforcement remains inconsistent, and issues such as bribery and patronage persist, particularly affecting interactions with public authorities. Foreign companies have raised concerns about unfair procurement practices, and while Benin is a signatory to international anti-corruption conventions, the overall risk of corruption remains high.

Benin's economy showed positive macroeconomic conditions in 2020, despite a slowdown in GDP growth from 6.9% in 2019 to 3.8% in 2020, primarily due to the COVID-19 pandemic and Nigeria's border closures. The government projects a rebound in economic growth to 7% in 2022, driven by key sectors such as port activity and cotton, alongside significant contributions from telecommunications, agriculture, and construction. The informal sector remains large, with the GDP composition being approximately 51% services, 26% agriculture, and 23% manufacturing.

Benin's investment climate is characterized by efforts to attract private investment, despite challenges such as high-level corruption and bureaucratic inefficiencies. The Investment and Exports Promotion Agency (APIEX) serves as a one-stop-shop for facilitating new investments, although it faces resource constraints. The government has initiated significant projects, including the Glo-Djigbé Industrial Zone, aimed at boosting economic growth and creating jobs, while also promoting public-private partnerships to fund its ambitious $20.6 billion action plan.