Comoros Country Summary

FATF Status

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

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Comoros was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Comoros was deemed Compliant for 0 and Largely Compliant for 4 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

The IMF report emphasizes the need for the authorities to implement the recently adopted anti-corruption law, which enhances asset declaration frameworks and empowers the Anti-Corruption Chamber (ACC) to enforce compliance. While the law improves transparency by allowing public access to asset declarations, challenges remain due to restrictions on publishing this information. Additionally, ongoing reforms include the establishment of an online tender management system for public contracts and an assessment of the anti-money laundering frameworks, alongside efforts to strengthen the Central Bank of Comoros' operations and autonomy.

The economy of Comoros is primarily small and trade-based, heavily reliant on agriculture, particularly the export of spices such as vanilla and cloves, which contributes approximately 40% to the GDP. The country faces significant challenges, including high poverty rates, reliance on remittances, and a fragile liquidity environment exacerbated by political instability and natural disasters.

The investment climate in Comoros is hindered by political instability and a history of coups, which have deterred foreign direct investment and complicated the business environment. There is a pressing need for structural reforms and infrastructure improvements to attract investors, alongside ongoing initiatives aimed at privatizing state-owned enterprises and enhancing workforce education and training. Despite these efforts, the country remains heavily reliant on foreign aid, limiting its economic independence and growth potential.