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 officials appear to exhibit little corruption, petty corruption is prevalent at the local level. The government does not require private companies to implement anti-bribery measures, and Eritrea is not part of international anti-corruption initiatives, lacking independent organizations to investigate corruption.

Eritrea's economy is heavily controlled by the government, 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 restricted, primarily benefiting state-controlled enterprises and the ruling political party. The lack of a transparent regulatory framework and strict government oversight further complicates the investment climate, making it challenging for foreign entities to operate in the country.

Eritrea's investment climate is highly restrictive, characterized by stringent government control over the economy and limited foreign investment opportunities. The lack of a commercial code, U.S. economic sanctions, and a non-convertible currency further complicate the investment landscape, while most businesses are small and family-owned, with larger enterprises typically state-controlled. Foreign investments, particularly in sectors other than mining, face significant barriers, and any profitable ventures often require direct negotiations with the ruling party.