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) in 2000 and the implementation of the Anti-Corruption Act of 2008. The country has made some progress in combating corruption, as evidenced by its improved ranking in the Transparency International Corruption Index, moving from 129th in 2018 to 110th in 2022. However, concerns persist regarding the ACC's impartiality and effectiveness, particularly in its investigations of the ruling party.

Sierra Leone's economy, which has shown resilience since emerging from a decade-long civil war in 2002, faced significant setbacks due to the Ebola epidemic in 2014 and the COVID-19 pandemic in 2020. Despite these challenges, the country has substantial investment potential, particularly in sectors like agriculture, mining, and infrastructure, driven by its rich mineral resources and favorable climate. However, ongoing issues such as high inflation, currency depreciation, and infrastructural deficits continue to hinder economic recovery and growth.

Sierra Leone presents significant investment potential due to its rich mineral reserves, natural resources, and favorable climate for agriculture. The government actively encourages foreign direct investment (FDI) across various sectors, particularly in infrastructure and energy, while also promoting public-private partnerships. However, challenges such as poor infrastructure, high corruption levels, and regulatory hurdles remain significant obstacles for potential investors.