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 adhere to the sanctions imposed by the United Nations, which aim to maintain international peace and security through various measures. The Security Council has established numerous sanctions regimes since 1966, focusing on issues like political conflicts and nuclear non-proliferation, with ongoing regimes as of October 2023.
The European Union has renewed its restrictive measures against a designated individual in Burundi until October 2024, emphasizing the need for improved human rights and governance. In contrast, the US and UK have lifted their sanctions, indicating a shift in their approach towards Burundi's political situation.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 20 |
| World Bank: Control of Corruption Percentile Rank | 3 |
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 power to misappropriate public resources, while existing anti-corruption laws are poorly enforced and do not hold officials accountable. The lack of transparency in government procurement and the disbandment 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 majority reliant on subsistence agriculture. The economy faces numerous challenges, including high youth unemployment at around 65%, pervasive corruption, and a lack of foreign direct investment, despite government efforts to modernize agriculture and develop the mining sector. Recent initiatives, such as a new Mining Code and infrastructure development, aim to stimulate economic growth, but persistent issues like foreign exchange shortages and climate-related agricultural damage continue to hinder recovery.
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 recent efforts by President Ndayishimiye's administration to modernize sectors like agriculture and mining, and to improve infrastructure, significant obstacles remain, including a largely unskilled workforce and ongoing foreign exchange shortages. The government has revised its investment code to attract quality investments, but addressing longstanding governance issues is crucial for fostering a more favorable investment environment.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
