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, but challenges remain in effectively addressing the issue. The High Commission on Prevention of 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 legal frameworks against bribery, enforcement is inconsistent, and foreign companies report concerns about biased procurement processes and unfair treatment.

Benin's economy showed positive macroeconomic conditions in 2021, with GDP growth rising from 3.8% in 2020 to 7.2% in 2021, driven by the reopening of Nigeria's border and strong agricultural performance. The economy is diverse, with services accounting for 51% of GDP, followed by agriculture at 26% and manufacturing at 23%. Key sectors include port activity, telecommunications, and agriculture, with the government aiming for stable growth projected at 6.2% for 2023.

Benin's investment climate is characterized by government 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 has faced resource constraints. The establishment of the Glo-Djigbé Industrial Zone (GDIZ) aims to enhance economic growth by transforming local agricultural products for export, with significant participation from foreign firms.