FATF Status

Burkina Faso is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 25 October 2024

Since February 2021, when Burkina Faso made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime, Burkina Faso has taken steps towards improving its AML/CFT regime, including by strengthening supervision of financial institutions and designated non-financial businesses and professions, establishing a system to provide access to competent authorities of accurate and up-to-date beneficial ownership information, and implementing a framework for the monitoring of the activities of NPOs at risk of TF abuse . Burkina Faso should continue to work on implementing its action plan to address its remaining strategic deficiency, by: implementing an effective targeted financial sanctions regime related to TF and PF.

The FATF notes Burkina Faso’s continued progress across its action plan, however all deadlines have expired and work remains. The FATF urges Burkina Faso to swiftly implement its action plan to address the above-mentioned strategic deficiency as soon as possible as all deadlines expired in December 2022.

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

Burkina Faso is on the EU Commission list of High Risk jurisdictions which have been identified as having strategic deficiencies in their anti-money laundering and countering the financing of terrorism (AML/CFT) regimes that pose significant threats to the financial system of the European Union (‘high-risk third countries’).

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Burkina Faso was undertaken in 2023. According to that Evaluation, Burkina Faso was deemed Compliant for 9 and Largely Compliant for 19 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Burkina Faso faces significant challenges with corruption, as indicated by Transparency International's 2023 Corruption Perceptions Index, which ranks the country 83 out of 180. A report from REN-LAC reveals that 85.4% of Burkinabe citizens perceive corruption as frequent, with public services such as municipal police and customs being viewed as the most corrupt. Despite the existence of anti-corruption bodies like ASCE-LC and legislation requiring asset declarations from officials, enforcement remains weak, and the culture of impunity continues to hinder effective governance.

Burkina Faso's economy is characterized by a GDP growth of 3.6% in 2023, with an estimated total GDP of $22.92 billion, and a projected growth of 5.5% in 2024. The country, ranked 185 out of 193 on the UNDP Human Development Index, faces significant challenges, including a high poverty rate where over 40% of the population lives below the poverty line, and a reliance on agriculture, which employs 80% of the population, primarily in subsistence farming. Despite these challenges, the government has initiated various development programs and projects, including a $12.4 billion Action Plan for Development and Stabilization aimed at addressing security and humanitarian crises.

Burkina Faso actively seeks to attract foreign investment and has established a legal and regulatory framework to ensure fair treatment for foreign investors, including streamlined company registration processes. The country has made significant strides in the mining sector, particularly gold, and has introduced tax incentives to encourage foreign participation. However, challenges remain, such as the dominance of state-owned enterprises in certain sectors and the need for improved enforcement of intellectual property protections.