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 the government exhibiting widespread corrupt practices despite existing laws aimed at prevention and prosecution. Under the Bashir regime, enforcement of anti-corruption measures was weak, leading to a culture of impunity among officials, while media reporting on corruption faced significant restrictions. Although the 2019 Constitutional Declaration introduced provisions for financial disclosure and the establishment of an anti-corruption commission, these efforts were undermined following the military takeover in October 2021, resulting in the abolition of the commission and the reinstatement of previously dismissed officials.

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 international debt. The country has experienced economic uncertainty, characterized by a depreciating national currency and shortages of essential goods, while sectors like mineral extraction and agriculture remain of interest to foreign investors despite obstacles such as poor infrastructure and endemic corruption.

Sudan's investment climate is characterized by significant challenges, including a lack of domestic investment capital, poor infrastructure, and endemic corruption, which deter foreign investment despite the government's eagerness to attract it. The Ministry of Investment and International Cooperation offers various incentives for foreign direct investment, including tax exemptions and land grants, but foreign investors face restrictions in key sectors and must navigate a burdensome bureaucracy. The ongoing political instability and military control further complicate the investment landscape, leading to economic uncertainty and a depreciating national currency.