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 functions such as procurement and taxation. Despite having an anti-corruption law, enforcement is weak, and the system is characterized by nepotism and cronyism, with selective prosecutions often targeting political adversaries. The lack of effective oversight and the dissolution of the National Assembly have further complicated accountability, leaving NGOs and citizens 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 such as agriculture, solar energy, and mining, challenges such as poor infrastructure, low GDP growth, and a lack of skilled labor hinder private sector development and foreign investment.

Chad's investment climate is characterized by significant challenges, including inadequate transport infrastructure, limited access to skilled labor, and unreliable electricity. Despite these obstacles, the government actively seeks foreign investment, particularly in sectors such as agriculture, energy, and mining, and offers incentives like tax exemptions for significant operations. Successful foreign investors often collaborate with trusted local partners, highlighting the potential for targeted investment in Chad's rich natural resources and emerging sectors.