Liberia Country Summary

FATF Status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Liberia was undertaken in 2023. According to that Evaluation, Liberia was deemed Compliant for 3 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Liberia has established laws to combat corruption, but their ineffective implementation and lack of enforcement contribute to widespread corruption in both public and private sectors, hindering economic growth and deterring foreign investment. Despite being a signatory to various anti-corruption conventions, the government struggles with accountability, as evidenced by numerous sanctions against officials for corrupt practices, yet no formal investigations have followed. Additionally, Liberia faces significant challenges related to organized crime, human trafficking, and financial crimes, exacerbated by weak governance, limited resources, and a lack of effective legal frameworks.

Liberia's economy, heavily reliant on natural resources such as mining, agriculture, and forestry, is gradually recovering from the devastation caused by civil wars that ended in 2003. Despite a GDP growth of 4.7 percent in 2023, the country still faces significant challenges, including corruption, a lack of infrastructure, and a high dependence on imports for basic needs. The government has recently committed to improving the investment climate and reducing corruption, but it remains to be seen whether these efforts will yield tangible results.

Liberia presents investment opportunities primarily in natural resources such as mining, agriculture, and forestry, alongside sectors like energy and telecommunications. However, the investment climate is hampered by significant challenges, including pervasive corruption, a lack of infrastructure, and a weak legal framework, which deter foreign direct investment. Despite these obstacles, the government has recently pledged to improve the investment environment by reducing corruption and establishing more predictable business policies.