FATF Status​

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

Compliance with FATF Recommendations​

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

Eritrean laws criminalize corruption among public officials and those influencing them, but the government's enforcement of these laws is unclear due to limited transparency. While high-level corruption appears minimal, petty corruption is prevalent at the local level. The government does not mandate private companies to implement anti-bribery measures, and there are no independent organizations to report corruption, indicating a lack of oversight in the country's anti-corruption efforts.

Eritrea's economy is characterized by strict government control, with most businesses being small, family-owned, and the state being the largest employer. The national currency, the Eritrean Nakfa, is non-convertible, and foreign investment is severely limited due to economic sanctions, lack of a commercial code, and restrictions on profit repatriation, particularly outside the mining sector.

Eritrea's investment climate is highly restrictive and not favorable for U.S. investment due to stringent government controls, lack of a commercial code, and limited access to international financial systems. Most businesses are small and family-owned, while larger enterprises are predominantly state-controlled or operated by the ruling political party, the Peoples Front for Democracy and Justice (PFDJ). Foreign investment is largely discouraged, with significant barriers such as non-convertible currency and restrictions on profit repatriation, particularly outside the mining sector.