FATF Status

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

Latest FATF Statement - 21 February 2025

Since June 2021, when South Sudan made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, South Sudan has taken steps towards improving its AML/CFT regime, including by finalising its comprehensive review of the AML/CFT Act (2012) to comply with the FATF Standards. South Sudan should continue to work to implement its action plan, including by: ; (1) fully implementing the 1988 Vienna Convention, the 2000 Palermo Convention, and the 1999 Terrorist Financing Convention; (2) ensuring that competent authorities are suitably structured and capacitated to implement a risk-based approach to AML/CFT supervision for financial institutions; (3) developing a comprehensive legal framework to collect and verify the accuracy of beneficial ownership information for legal persons; (4) finalising the operationalisation of a fully functioning and independent FIU; (5) establishing and implementing the legal and institutional framework to implement targeted financial sanctions in compliance with United Nations Security Council Resolutions on terrorism and WMD proliferation financing; and (6) commencing implementation of targeted risk-based supervision/monitoring of NPOs at risk of TF abuse.

The FATF notes South Sudan’s limited progress across its action plan with all deadlines now expired and work remaining. The FATF again encourages South Sudan to continue to implement its action plan to address the above-mentioned strategic deficiencies as soon as possible and demonstrate strong political and institutional commitment to strengthen the effectiveness of its AML/CFT regime, particularly in supporting the lead AML/CFT agency in coordinating national AML/CFT efforts.

Compliance with FATF Recommendations

South Sudan has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.

South Sudan faces severe corruption issues, with a lack of enforcement of existing laws and significant gaps in legislation. The country has been ranked as the most corrupt globally, with politically connected individuals often immune from prosecution and no effective anti-corruption measures in place. Despite having established a commission to combat corruption, it lacks resources and authority, leading to minimal progress in addressing the pervasive bribery and misconduct within both government and business sectors.

South Sudan's economy is heavily reliant on oil revenue, generating approximately $1.6 billion annually, but is plagued by corruption, mismanagement, and a lack of transparency. The transitional government has made little progress in implementing necessary reforms, which has led to a deteriorating investment climate and a depreciating currency. Additionally, the absence of critical legal and financial frameworks further exacerbates the risks for businesses operating in the country.

The investment climate in South Sudan remains challenging, characterized by a lack of significant improvements in trade and investment conditions over the past year. The slow implementation of political and economic reforms, coupled with endemic corruption and a dysfunctional legal system, creates a high-risk environment for businesses, deterring foreign investment. Additionally, the absence of critical mechanisms for business operations, such as a permanent constitution and effective anti-corruption measures, further exacerbates the difficulties faced by potential investors.