Sudan Country Summary

FATF Status

Sudan is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 23 October 2015

The FATF welcomes Sudan’s significant progress in improving its AML/CFT regime and notes that Sudan has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in February 2010. Sudan is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Sudan will work with MENAFATF as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

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 Sudan was undertaken by the Financial Action Task Force (FATF) in 2013. According to that Evaluation, Sudan was deemed Compliant for 0 and Largely Compliant for 4 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.

Corruption is pervasive in Sudan, with weak enforcement of laws against officials, leading to a culture of impunity. Despite some legislative frameworks and the establishment of an anticorruption attorney, the implementation of anti-corruption measures has been ineffective, particularly under the Bashir regime, which faced criticism for suppressing media reporting on corruption. Following the military takeover in 2021, many anticorruption efforts were dismantled, and the country continues to struggle with high levels of corruption and organized crime, impacting governance and the rule of law.

Sudan's economy has faced significant challenges following the military takeover in October 2021, which halted many of the reforms initiated by the Civilian-Led Transitional Government (CLTG) aimed at stabilizing the economy and reducing its $56 billion international debt. The political turmoil has led to economic uncertainty, a depreciating national currency, and shortages of essential goods, while foreign investment remains hindered by poor infrastructure, corruption, and bureaucratic obstacles. Despite these challenges, sectors such as mineral extraction and agriculture continue to attract interest from foreign investors.

Sudan's investment climate has been significantly affected by political instability following the military takeover in October 2021, which has stalled previous reforms aimed at attracting foreign direct investment (FDI). Despite the government's encouragement of FDI through tax incentives and a legal framework that allows foreign ownership, challenges such as poor infrastructure, endemic corruption, and a lack of domestic investment capital persist. The sectors of greatest interest to foreign investors include mineral extraction and agriculture, but ongoing economic uncertainty and restrictions in certain sectors complicate the investment landscape.