Benin Country Summary

FATF Status

Benin is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

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 Benin was undertaken in 2023. According to that Evaluation, Benin was deemed Compliant for 7 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Benin has made strides in addressing corruption through various laws and the establishment of entities like the Haut-Commissariat à la Prévention de la Corruption (HCPC), which tackles issues such as money laundering and economic fraud. Despite these efforts, enforcement remains inconsistent, and concerns about unfair procurement practices persist, indicating ongoing challenges in rooting out corruption effectively.

In terms of crime resilience, Benin faces issues such as human trafficking, organized crime, and environmental degradation, with criminal actors exploiting governance vulnerabilities. Strengthening the criminal justice system, enhancing economic stability, and fostering civil society engagement are crucial for improving resilience against crime and promoting transparency in governance.

Benin's economy has shown resilience despite recent political challenges and the impacts of the COVID-19 pandemic, with GDP growth projected to rebound to 6.5-7% in 2022, driven primarily by port activity and the cotton sector. The government has implemented a $20.6 billion action plan aimed at fostering economic transformation and job creation, while also working to attract private investment through initiatives like the Glo-Djigbé Industrial Zone, which is expected to significantly boost GDP and export revenues. However, concerns regarding corruption, bureaucratic inefficiencies, and the need for improved contract enforcement persist, potentially hindering foreign investment and overall economic stability in the country.