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 enforcement contribute to widespread corruption in both public and private sectors, hindering economic growth and foreign investment. Despite being a signatory to various anti-corruption conventions, the country continues to struggle with bribery and extortion, particularly in government procurement and regulatory systems. Recent U.S. sanctions against several Liberian officials for corruption have garnered public support, yet no formal investigations have been initiated following these actions.

Liberia's economy, heavily reliant on natural resources such as mining, agriculture, and forestry, has been gradually recovering since the end of civil wars in 2003, yet it still struggles to reach pre-war economic levels. The country faces significant challenges, including high levels of corruption, low human development indicators, and a reliance on imports for basic needs, which contribute to its low GDP ranking globally. Despite these obstacles, the economy grew by 4.7 percent in 2023 and is projected to grow by 5.3 percent in 2024, with a new government promising reforms to improve the investment climate.

Liberia presents investment opportunities primarily in natural resources such as mining, agriculture, and forestry, along with sectors like energy and telecommunications. However, the investment climate is hindered by challenges including corrupt governance, inadequate infrastructure, and a lack of reliable power and internet access. Despite these obstacles, the new government has pledged to improve the investment environment by addressing corruption and establishing more predictable business policies.