FATF status

Mali is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 25 October 2024

Since October 2021, when Mali made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime, Mali has taken steps towards improving its AML/CFT regime, including by improving the robustness of the terrorist financing offence in its domestic legislation, resulting in the ability to better investigate the full scope of terrorism financing activities. Mali should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) demonstrating timely access to accurate beneficial ownership information; and (2) demonstrating the effectiveness of its targeted financial sanctions framework related to TF and PF.

The FATF notes Mali’s continued progress across its action plan, however all deadlines have now expired and work remains. The FATF encourages Mali to continue to implement its action plan to address the above-mentioned strategic deficiencies as soon as possible.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Mali was undertaken in 2023. According to that Evaluation, Mali was deemed Compliant for 6 and Largely Compliant for 20 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Corruption remains a significant barrier to foreign investment and economic development in Mali, with frequent reports of bribery in government contracts and procedures. Despite the government's commitment to anti-corruption efforts, including the establishment of specialized courts and agencies, enforcement of anti-corruption laws has been inconsistent, leading to skepticism about the independence of the judicial system. Recent initiatives, such as the introduction of a standardized invoicing system and the National Strategy to Fight Corruption, aim to enhance transparency and accountability, but challenges persist due to political interference and a lack of compliance from public officials.

Mali's economy is significantly impacted by political instability, with a transition government in place since a coup in 2020, which has led to a fragile security situation and uncertainty regarding institutional reforms. The country relies heavily on international financial institutions for funding major development projects, while facing challenges such as corruption, poor infrastructure, and inflation, which surged to 10 percent in 2022. Despite these obstacles, Mali's GDP growth is projected to reach 5 percent in 2023, with a favorable view of U.S. products among local businesses seeking partnerships.

Mali's investment climate is hindered by significant challenges such as political instability, corruption, and poor infrastructure, which deter foreign investment despite the government's efforts to promote direct investment and export-oriented businesses. The transition government has adopted a new constitution and is working on reforms, but the ongoing insecurity and lack of a clear electoral timeline contribute to an uncertain investment environment. While foreign and domestic investments are generally treated equally under the law, practical challenges such as corruption and bureaucratic inefficiencies remain prevalent.