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 economic activity and foreign direct 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, with no specific protections for NGOs investigating corruption. The lack of effective oversight mechanisms and the dissolution of the National Assembly further exacerbate the issue, leaving the public with limited means to report corruption.

Chad's economy is heavily reliant on the petroleum sector, which has dominated since oil production began in 2003, while agriculture and livestock breeding also play significant roles in employing the majority of the population. Despite the government's efforts to diversify the economy by prioritizing sectors like agriculture and solar energy, challenges such as low human development, poverty, and a lack of infrastructure hinder economic growth and investment opportunities.

Chad's investment climate is characterized by significant challenges, including inadequate transport infrastructure, low GDP growth, and a lack of skilled labor, which hinder private sector development. 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 partner with trusted local entities to navigate the complexities of the Chadian market.