FATF Status​

Equatorial Guinea 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 Equatorial Guinea was undertaken in 2016. According to that Evaluation, Equatorial Guinea was deemed Compliant for 0 and Largely Compliant for 6 of the FATF 40 + 9 Recommendations.

Equatorial Guinea faces significant challenges with widespread corruption and weak governance, as reflected in its low rankings on corruption indexes. Despite the introduction of some anti-corruption measures and the ratification of international conventions, the implementation of laws remains ineffective, allowing officials to engage in corrupt practices without accountability. Civil society organizations struggle to operate due to government intimidation, and the judicial system lacks transparency, particularly in public contract awards and labor disputes, further exacerbating the corruption issue.

Equatorial Guinea's economy is heavily reliant on foreign direct investment (FDI) in the oil and gas sector, which significantly contributes to government revenues. However, the country faces challenges such as a lack of clear business regulations, underinvestment in critical infrastructure, and a banking sector burdened by nonperforming loans, leading to a constrained investment climate despite government efforts to promote economic diversification.

The investment climate in Equatorial Guinea is characterized by a lack of clear regulations and infrastructure, which deters foreign direct investment (FDI). Despite the government's intentions to promote private sector participation and economic diversification, concrete actions have been minimal, and foreign investors often face overwhelming bureaucracy and uncertainty. Recent changes, such as the reduction of corporate tax rates, have not sufficiently improved the overall investment environment.