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 Bashir regime implementing weak enforcement of anti-corruption laws and allowing officials to evade punishment by returning stolen funds. Although some measures were introduced post-Bashir, such as financial disclosure requirements and the establishment of an anti-corruption commission, these efforts were undermined by the military takeover in 2021, which led to the commission's dissolution and the reinstatement of dismissed officials. Sudan ranks 164 out of 180 on Transparency International's Corruption Perceptions Index, highlighting the significant challenges in addressing corruption and promoting transparency.

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). The country has experienced economic uncertainty, a depreciating national currency, and shortages of essential goods, exacerbated by the suspension of international financial assistance. Key sectors of interest for foreign investment include mineral extraction and agriculture, but obstacles such as poor infrastructure, corruption, and a lack of domestic investment capital hinder economic growth.

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