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 corruption challenges, ranking 83 out of 180 countries in Transparency International's 2023 Corruption Perceptions Index, with a growing public perception of frequent corruption. The government has established various anti-corruption bodies, such as ASCE-LC and ARCOP, which conduct audits and monitor public contracts, yet enforcement remains weak due to institutional shortcomings and a culture of impunity. Despite these issues, Burkina Faso has made strides in adopting anti-corruption frameworks and improving public financial management, although corruption continues to pose high risks for businesses operating in the country.

Burkina Faso's economy is characterized by a GDP growth rate of 3.6% in 2023, with projections of 5.5% for 2024, despite being one of the world's poorest countries, ranking 185 out of 193 on the UNDP Human Development Index. The economy is heavily reliant on agriculture, with over 80% of the population engaged in subsistence farming, and gold mining has become a significant sector, attracting foreign investment. The government has introduced various measures to support economic development, including a $12.4 billion Action Plan for Development and Stabilization, aimed at addressing security challenges and improving governance.

Burkina Faso actively seeks to attract foreign investment and has established a legal framework to ensure fair treatment for foreign investors, including streamlined company registration and dispute resolution mechanisms. However, challenges remain, such as the dominance of state-owned enterprises in certain sectors and a complex tax system that can hinder competition. Despite these issues, the country has seen significant foreign investment, particularly in gold mining and telecommunications, and offers various tax incentives to encourage investment.