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 tax collection. Despite the government's commitment to anti-corruption measures, including the establishment of specialized courts and the Office of the Auditor General, enforcement remains weak, and many high-profile cases have not led to timely prosecutions. Recent initiatives, such as a standardized invoicing system and a national strategy to combat corruption, aim to enhance transparency and accountability, but challenges persist due to political interference and a lack of judicial independence.

Mali's economy is significantly impacted by political instability and insecurity, which have hindered private investment despite some interest from U.S. firms. The country relies heavily on bilateral and multilateral financial support for development projects, and its GDP growth has slowed, with inflation rates spiking due to various external pressures, including sanctions and the global economic climate. Agriculture remains a key sector, contributing to a substantial portion of GDP, while the mining and services sectors also play important roles.

Mali's investment climate is significantly hindered by political instability, corruption, and poor infrastructure, which deter foreign investment despite the government's efforts to promote direct investment and export-oriented businesses. Foreign investors face challenges such as unfair tax practices, difficulties in customs clearance, and a lack of transparency in the regulatory system, compounded by a fragile security situation. Although the investment code offers incentives for both domestic and foreign investors, the practical challenges often overshadow these benefits.