Zimbabwe Country Summary
Sanctions
EU & US sanctions in place
FATF AML Deficient List
No, but on EU list of high risk jurisdictions
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF status
Zimbabwe is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies
European Commission list of countries with strategic deficiencies in their AML/CFT regimes
Zimbabwe is no longer on the EU Commission list of high risk countries.
Compliance with FATF Recommendations
The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Zimbabwe was undertaken in 2024. According to that Evaluation, Zimbabwe was deemed Compliant for 20 and Largely Compliant for 17 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
Zimbabwe, as a UN member, must adhere to sanctions imposed by the United Nations to maintain international peace and security. The UN Security Council has established various sanctions regimes since 1966, which include economic sanctions, arms embargoes, and travel bans, with a focus on protecting the rights of those targeted. Currently, there are 15 ongoing sanctions regimes addressing issues like political conflicts and counter-terrorism, managed by a sanctions committee.
The EU and US have imposed sanctions on Zimbabwe, including an arms embargo and asset freezes on government officials. The EU renewed its restrictive measures in February 2024, while the US revoked its sanctions regime in March 2024. These measures were initially introduced due to human rights violations and political repression in Zimbabwe, with ongoing restrictions on arms exports and financial assistance.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 24 |
| World Bank: Control of Corruption Percentile Rank | 8 |
Corruption is a significant barrier to business operations in Zimbabwe, with the country scoring poorly on governance and transparency indices. Despite the existence of anti-corruption laws and the establishment of the Zimbabwe Anti-Corruption Commission (ZACC), enforcement is often selective, leading to a lack of accountability for high-ranking officials. Corruption allegations frequently arise from opaque procurement processes, and while some efforts have been made to combat corruption, such as integrity pledges from officials, the overall environment remains challenging for investors.
Economy
Zimbabwe possesses significant economic development potential, particularly in sectors like mining, agriculture, energy, and tourism, bolstered by its rich natural resources and skilled labor force. However, the country faces numerous challenges, including power shortages, underutilized irrigation systems, and a high level of external debt, which collectively hinder its economic growth and investment climate.
Zimbabwe presents a challenging investment climate despite its significant economic potential, particularly in sectors like mining, agriculture, energy, and tourism. The government has adopted an "open for business" policy and established the Zimbabwe Investment and Development Agency (ZIDA) to facilitate foreign direct investment (FDI), offering incentives such as tax breaks. However, issues such as policy inconsistency, corruption, and inadequate protection of property rights continue to hinder investor confidence.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
