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 a lack of transparency. While high-level officials appear to engage in little corruption, petty corruption is prevalent locally. Eritrea is not part of international anti-corruption initiatives, and there are no independent organizations to report corruption, indicating a significant gap in oversight and accountability.

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 not convertible, and foreign investment is severely restricted due to strict government regulations and a lack of transparency in the legal and regulatory systems.

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 the non-convertibility of the national currency further hinder foreign investment, with most businesses being small and family-owned or state-controlled. Direct negotiations with the ruling Peoples Front for Democracy and Justice (PFDJ) are often necessary for any significant investment, particularly in the mining sector, which is one of the few areas where foreign investment is somewhat encouraged.