FATF status

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

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Sierra Leone was undertaken by the Financial Action Task Force (FATF) in 2007. According to that Evaluation, Sierra Leone was deemed Compliant for 2 and Largely Compliant for 1 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

Corruption remains a significant issue in Sierra Leone, particularly in government procurement and regulatory processes, despite the establishment of the Anti-Corruption Commission (ACC) and the implementation of the Anti-Corruption Act of 2008. The country has made some progress in combating corruption, as evidenced by its rise in the Transparency International Corruption Index from 129th in 2018 to 110th in 2022, and the ACC has recovered over three million dollars in misappropriated funds since 2018. However, concerns persist regarding the ACC's impartiality, with accusations of targeting opposition politicians while neglecting credible allegations against the ruling party.

Sierra Leone's economy has faced significant challenges since emerging from a decade-long civil war in 2002, including the impacts of the Ebola epidemic and the COVID-19 pandemic, which severely affected economic activity and living standards. Despite these setbacks, the country has substantial investment potential due to its rich mineral resources, fertile land for agriculture, and opportunities in various sectors such as energy and infrastructure, with a strong focus on attracting foreign direct investment (FDI) to support recovery and growth.

Sierra Leone presents significant investment potential across various sectors, particularly due to its rich mineral reserves, fertile agricultural land, and opportunities in energy and infrastructure. The government actively encourages foreign direct investment (FDI) to aid economic recovery, having established the National Investment Bureau to streamline business processes and promote a more investor-friendly environment. However, challenges such as poor infrastructure, high corruption levels, and regulatory hurdles continue to hinder investment efforts.