FATF Status

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

Compliance with FATF Recommendations

Djibouti has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.

Djibouti has established laws to combat corruption among public officials, but there is a lack of enforcement and no recorded prosecutions. Despite being a party to the UN Convention against Corruption, institutions responsible for investigating and enforcing anti-corruption measures lack the authority for meaningful reform, and internal codes of conduct to prevent bribery have not been implemented. While U.S. firms do not cite corruption as a major barrier to investment, there are allegations of coercive practices related to government contracts.

Djibouti's economy is characterized by a strategic geographic location and a reliance on foreign direct investment (FDI) to drive growth, particularly in sectors like transport, logistics, and energy. Despite facing challenges such as high unemployment and electricity costs, the government is implementing reforms to enhance competitiveness and attract investment, with a GDP growth forecast of 5.1% for 2024.

Djibouti's investment climate is characterized by a strong encouragement of foreign direct investment (FDI), supported by government initiatives aimed at improving competitiveness and transparency. The country benefits from its strategic location, free zones, and an open trade regime, although challenges such as high electricity costs, unemployment, and bureaucratic complexities persist. The government actively promotes investment in priority sectors like transport, logistics, and energy, while foreign investors enjoy equal rights in establishing businesses without the need for local partners, except in specific industries.