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 prosecution, with no recorded cases of corruption being pursued. Despite being a party to the UN Convention against Corruption, the country's institutions responsible for investigating corruption lack the authority to implement meaningful reforms, and internal codes of conduct to prevent bribery have not been enforced. While U.S. firms do not cite corruption as a major barrier to investment, there are allegations of corrupt practices related to government contracts.

Djibouti's economy is characterized by its strategic geographic location and reliance on foreign direct investment (FDI) to drive growth, particularly in sectors such as transport, logistics, and energy. Despite a GDP growth forecast of 5.1% for 2024, challenges such as high unemployment, a large informal sector, and high electricity costs hinder economic development. The government is actively reforming its investment policies to improve competitiveness and attract foreign investment.

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 and has identified key sectors such as transport, logistics, and energy for investment, although challenges such as high electricity costs and regional instability persist. The National Investment Promotion Agency (NIPA) plays a crucial role in facilitating investment operations and streamlining administrative processes for both foreign and domestic investors.