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Burundi Country Summary

Sanctions

EU Restrictions in force

FATF AML Deficient List

No - not yet undertaken a Mutual Evaluation

Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center

Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.

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Anti Money Laundering

FATF Status

Burundi is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

Burundi has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.

Sanctions

Burundi, as a UN member, must comply with UN sanctions aimed at maintaining international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include various measures such as economic sanctions and travel bans, with a focus on protecting the rights of those targeted. Currently, there are 15 ongoing sanctions regimes addressing issues like political conflicts and counter-terrorism, with a Consolidated List for implementation purposes.

The EU has renewed its sanctions against Burundi until October 2024, targeting one individual with asset freezes and travel bans, while expressing concerns over unresolved human rights issues. The EU emphasizes the need for the Burundian government to take concrete actions to improve human rights and governance, maintaining a political dialogue to foster cooperation. In contrast, the US and UK have revoked their sanctions against Burundi, reflecting a shift in their engagement with the country.

Bribery & Corruption

Rating 0 (bad) - 100 (good)
Transparency International Corruption Index 20
World Bank: Control of Corruption Percentile Rank 4

Burundi continues to struggle with widespread corruption, particularly grand corruption, despite the government's efforts to combat it. Political elites and former officials misuse their positions to embezzle public resources, and existing anti-corruption laws are poorly enforced, with many officials enjoying immunity from prosecution. The lack of transparency in government procurement and the disbanding of the anti-corruption court further exacerbate the issue, making it a significant barrier to foreign investment.

Economy

Burundi is one of the world's most impoverished countries, with 87% of its population living below the World Bank's poverty line of $2.15 per day, and a significant portion reliant on subsistence agriculture. The economy faces challenges such as high youth unemployment, estimated at 65%, and persistent foreign exchange shortages that hinder investment and growth. Despite government efforts to modernize agriculture and attract foreign direct investment, issues like corruption and an ill-equipped bureaucracy continue to impede economic progress.

Burundi's investment climate is challenged by pervasive corruption, an ill-equipped bureaucracy, and deficiencies in the rule of law, which hinder foreign direct investment (FDI) despite government efforts to improve the business environment. The government has enacted a new Mining Code to stimulate the mining sector and is working on infrastructure improvements to facilitate trade, but significant issues such as a largely unskilled workforce and insufficient access to foreign currency remain barriers to attracting substantial investments.

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