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 importance of implementing 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 citizens access to asset declarations, challenges remain due to restrictions on publication without consent. Additionally, ongoing reforms include the establishment of an online tender management system for public contracts and an assessment of the Central Bank of Comoros, which aims to improve transparency and operational capacity.

The economy of Comoros is a small trade-based island economy heavily reliant on agriculture, particularly the export of spices such as vanilla and cloves, which contributes about 40% to the GDP. Despite facing challenges like high unemployment, inadequate infrastructure, and a heavy dependence on foreign aid, the country has implemented some structural and fiscal reforms aimed at enhancing economic stability.

The investment climate in Comoros is significantly affected by political instability and a history of coups, which create challenges for foreign direct investment. Despite these obstacles, the government is implementing reforms to improve the business environment and attract foreign investors, supported by membership in organizations like OHADA to enhance legal frameworks. However, issues such as a lack of skilled labor and inadequate infrastructure continue to deter potential investors.