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 UN Security Council to maintain international peace and security. The Security Council has established various sanctions regimes since 1966, which include economic sanctions and targeted measures like arms embargoes and asset freezes. As of October 2023, there are 15 ongoing sanctions regimes aimed at political settlements, nuclear non-proliferation, and counter-terrorism, with a Consolidated List for individuals and entities subject to these measures.
The EU and US have imposed sanctions on Zimbabwe, including an arms embargo and asset freezes on certain government members. 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 have evolved over time, reflecting the political situation in Zimbabwe.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 24 |
| World Bank: Control of Corruption Percentile Rank | 10 |
Corruption is a significant barrier to business in Zimbabwe, with the country scoring poorly on governance and transparency indices, leading U.S. firms to view it as a major obstacle to foreign direct investment. Despite the existence of anti-corruption laws and the establishment of the Zimbabwe Anti-Corruption Commission (ZACC), enforcement is often selective, with high-ranking officials frequently evading prosecution. Corruption allegations are rampant, and while some measures have been taken to address the issue, such as integrity pledges from officials, the overall environment remains challenging for both local and foreign businesses.
Economy
Zimbabwe possesses significant economic potential due to its rich natural resources, including Africa's largest lithium reserves and vast agricultural opportunities. However, the country faces numerous challenges, such as power shortages, a struggling agriculture sector impacted by climate phenomena, 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, characterized by abundant natural resources and skilled labor. The government has adopted policies to attract foreign direct investment, including tax incentives and the establishment of the Zimbabwe Investment and Development Agency (ZIDA) as a one-stop-shop for investors. However, issues such as policy inconsistency, corruption, and inadequate protection of property rights continue to hinder the business environment.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
