FATF Status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Chad was undertaken in 2023. According to that Evaluation, Chad was deemed Compliant for 4 and Largely Compliant for 10 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Corruption is a significant barrier to foreign investment in Chad, affecting various government sectors such as procurement and taxation. Despite having an anti-corruption law, enforcement is weak, and prosecutions often appear politically motivated. The lack of effective oversight and the absence of specific protections for NGOs investigating corruption further exacerbate the issue, making it a high-risk environment for potential investors.

Chad's economy is heavily reliant on the petroleum sector, which has dominated since oil production began in 2003, while agriculture and livestock breeding employ the majority of the population. Despite its rich natural resources, Chad faces significant economic challenges, including low human development, high poverty rates, and a lack of infrastructure and skilled labor, which hinder private sector growth and foreign investment.

Chad's investment climate is characterized by significant challenges, including inadequate transport infrastructure, low GDP growth, and a lack of skilled labor. Despite these obstacles, the government actively seeks foreign investment, particularly in sectors like agriculture, energy, and mining, and offers incentives such as tax exemptions for significant operations. Successful foreign investors often collaborate with trusted local partners to navigate the complexities of the market.