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 major issue in Sierra Leone, particularly in areas such as government procurement and regulatory enforcement. Despite signing the UN Convention against Corruption and establishing the Anti-Corruption Commission (ACC), challenges persist, including accusations of selective enforcement against opposition politicians. The ACC has made strides in recovering misappropriated funds and increasing its powers through recent amendments, yet the implementation of recommendations from corruption inquiries has been slow.

Sierra Leone's economy, which has shown resilience since emerging from a decade-long civil war in 2002, has faced significant challenges due to the Ebola epidemic in 2014 and the COVID-19 pandemic in 2020, leading to sharp declines in economic activity and rising inflation. The country is rich in mineral resources and has potential for foreign direct investment (FDI) across various sectors, including agriculture, fisheries, and infrastructure, but it grapples with issues such as poor infrastructure, high corruption, and a lack of skilled labor that hinder investment and economic 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 establishing the National Investment Bureau to streamline business processes. However, challenges such as poor infrastructure, corruption, and regulatory hurdles remain significant obstacles to attracting and sustaining investment.