FATF Status

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

Latest FATF Statement - 24 October 2014

The FATF welcomes Tajikistan’s significant progress in improving its AML/CFT regime and notes that Tajikistan 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 June 2011. Tajikistan is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Tajikistan will work with EAG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Tajikistan was undertaken in 2024. According to that Evaluation, Tajikistan was deemed Compliant for 7 and Largely Compliant for 29 of the FATF 40 Recommendations. The Effectiveness & Technical Compliance ratings were not assessed and it remains Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness ratings.

Tajikistan has implemented anti-corruption laws, but their enforcement is often politically motivated and ineffective, resulting in a low ranking on Transparency International's Corruption Perceptions Index. Despite having a legal framework to combat corruption, including provisions against bribery and extortion, the actual enforcement is poor, allowing government officials to engage in corrupt practices without fear of consequences. U.S. firms have reported that corruption significantly hinders investment, particularly in government procurement and taxation.

Tajikistan's economy is characterized by a strong government presence, particularly through state-owned enterprises, and a significant reliance on foreign direct investment, which has seen a substantial decline in recent years. The country is focusing on industrialization and modernization, with efforts to develop its mining sector and promote a green economy, but faces challenges such as bureaucratic hurdles, corruption, and a flawed banking system that deter foreign investors.

Tajikistan's investment climate is characterized by a strong government interest in attracting foreign direct investment, particularly in the mining sector. However, potential investors face significant challenges, including bureaucratic hurdles, corruption, and a complicated regulatory environment that can make securing incentives difficult. Despite these obstacles, the government offers various incentives for foreign investors, such as land-use rights and reduced tariffs, although the practical implementation of these incentives can be inconsistent.