FATF Status

Botswana is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 October 2021

The FATF welcomes Botswana's significant progress in improving its AML/CFT regime. Botswana has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in October 2018. Botswana is therefore no longer subject to the FATF’s increased monitoring process. Botswana will continue to work with ESAAMLG to improve further its AML/CFT system. 

European Commission List of Countries with Strategic Deficiencies in their AML/CFT Regimes

Botswana  was removed from the EU Commission list of high risk countries in March 2022.

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 Botswana was undertaken in 2022. According to that Evaluation, Botswana was deemed Compliant for 7 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Botswana's corruption perception has worsened, with its score on Transparency International's Corruption Perception Index dropping from 60 in 2022 to 59 in 2023, and its ranking falling from 3rd to 39th out of 180 countries. Reports indicate rising levels of corruption, particularly in government tender procurements, despite government efforts to combat the issue through the Directorate on Corruption and Economic Crime (DCEC) and the Financial Intelligence Agency (FIA). While Botswana is not a party to the OECD Anti-Bribery Convention, it is a signatory to the United Nations Convention against Corruption, and ongoing investigations and prosecutions of high-level officials reflect the government's commitment to addressing corruption.

Botswana, classified as an upper middle-income country by the World Bank, has a population of 2.63 million and is economically anchored by its diamond mining sector, which accounts for over 80% of export earnings. The country maintains a stable macroeconomic environment, characterized by fiscal discipline and a well-capitalized banking system, while aiming to diversify its economy to reduce dependence on mining and achieve high-income status by 2036.

Botswana offers a stable investment climate characterized by its sound macroeconomic environment and low tax rates, making it an attractive destination for foreign direct investment. The country is economically anchored by its diamond sector, which accounts for over 80% of export earnings, and has established a robust investment promotion framework through the Botswana Investment and Trade Centre (BITC) to assist foreign investors. Despite challenges related to dependence on mining and perceptions of corruption, Botswana maintains a high credit rating and aims to diversify its economy while enhancing infrastructure and human capital.