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 27 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, leading to a low ranking of 150 out of 180 countries in Transparency International’s 2022 Corruption Perceptions Index. While the legal framework exists to combat corruption, including provisions against bribery and conflict of interest, the lack of protection for NGOs and the selective enforcement of laws hinder genuine progress. U.S. firms have reported that corruption significantly obstructs investment, particularly in government procurement and taxation.

Tajikistan's economy is characterized by a strong government presence, with state-owned enterprises dominating key sectors and a reliance on foreign direct investment, which has seen a significant decline recently. The government is focused on industrialization and modernization, particularly in mining and technology, but faces challenges such as bureaucratic hurdles, corruption, and a flawed banking sector 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 lack of transparency in regulatory practices. Despite the government's efforts to provide incentives for foreign investment, the complex and often opaque regulatory environment can deter foreign participation.