South Sudan Country Summary

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 is plagued by rampant corruption, with laws in place but little enforcement, leading to its ranking as the world's most corrupt country. Politically connected individuals often evade prosecution, and the government does not support private companies in establishing anti-bribery measures. Additionally, the country faces significant challenges in combating human trafficking, arms trafficking, and environmental crimes, while civil society and journalists face harassment and intimidation, further undermining efforts to address these issues.

South Sudan's economy is heavily reliant on oil revenue, generating approximately $1.6 billion annually, but it suffers from endemic corruption and mismanagement within the oil sector. The transitional government has made little progress on necessary reforms, leading to a lack of transparency and critical mechanisms for business operations, which increases risks for potential investors. Despite some international financial support, the economy remains unstable, with the South Sudanese Pound continuing to depreciate and no significant diversification efforts undertaken.

The investment climate in South Sudan remains challenging, with no significant improvements in trade and investment conditions over the past year. The lack of essential political, financial, and judicial reforms, coupled with endemic corruption and a poorly functioning legal system, creates a high-risk environment for businesses. Foreign investors face bureaucratic hurdles, arbitrary taxation, and the threat of expropriation, which further deter investment in the country.