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 predominantly agricultural, contributing approximately 40% to the GDP and employing over half of the workforce, with notable production of spices like ylang-ylang and vanilla. However, the country faces significant challenges, including high unemployment, reliance on remittances, and external debt exceeding the HIPC threshold, prompting government efforts to diversify exports and enhance tourism for economic growth.

The investment climate in Comoros is negatively impacted by political instability and inadequate infrastructure, which deter foreign direct investment. However, the country is a member of the Organisation for the Harmonisation of Business Law in Africa (OHADA), which seeks to enhance the legal framework for business operations. Ongoing efforts to privatize state-owned enterprises and improve the business environment face challenges such as a bloated civil service and insufficient transportation systems.