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 laws aimed at combating corruption, but their ineffective implementation and lack of non-discriminatory application hinder progress, contributing to a perception of widespread corruption in both public and private sectors. This corruption is a significant barrier to foreign investment, with reports of extortion and bribery affecting various government processes. Despite Liberia's commitment to international anti-corruption conventions, the situation remains dire, as evidenced by recent U.S. sanctions against several officials for their involvement in corrupt practices.

Liberia's economy, heavily reliant on natural resources such as mining, agriculture, and forestry, has been gradually recovering from the devastation of civil wars that ended in 2003, though it still struggles to reach pre-war economic levels. The GDP remains among the lowest globally, but growth was recorded at 4.7 percent in 2023, with projections of 5.3 percent for 2024. Despite these positive signs, pervasive corruption and inadequate infrastructure continue to hinder investment and overall economic development.

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 severely constrained by infrastructure deficits, pervasive corruption, and a lack of reliable electricity and internet access. Despite these challenges, the new government has pledged to improve the investment environment by addressing corruption and establishing more predictable business policies.