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 a la Prevention de la Corruption (HCPC), which addresses various forms of corruption and economic crimes. Despite these efforts, enforcement remains inconsistent, with bribery still prevalent and often affecting foreign investment due to biased procurement practices. The country is a signatory to international anti-corruption conventions, yet challenges such as petty bribery and patronage systems continue to undermine the effectiveness of these laws.

Benin's economy showed positive macroeconomic conditions in 2020, with GDP growth slowing to 3.8 percent due to the COVID-19 pandemic and Nigeria's border closures. The government projects a recovery in growth to 7 percent in 2022, driven by key sectors such as port activity and cotton, while the economy is composed of approximately 51 percent services, 26 percent agriculture, and 23 percent 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 key facilitator for new investments, having significantly reduced processing times for business registrations. Additionally, the government is promoting the Glo-Djigbé Industrial Zone, which aims to enhance economic growth and export capabilities, although concerns remain regarding the equitable distribution of resources and contracts.