Tajikistan Country Summary

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. Corruption poses significant challenges for foreign investors, particularly in government procurement and taxation, while the country remains a source and transit point for human trafficking and drug smuggling. The government's lack of professionalism, coupled with a weak judicial system and restricted civil society, further exacerbates the issues of corruption and criminal activity.

Tajikistan's economy is characterized by a strong government presence, particularly through state-owned enterprises, which dominate key sectors. The country has been making efforts to attract foreign direct investment, particularly in mining, but faces significant bureaucratic hurdles, corruption, and a flawed banking system that create a challenging environment for investors. Despite these challenges, the government has initiated various strategies aimed at industrialization, modernization, and the development of a green economy.

Tajikistan's investment climate is characterized by the government's ongoing efforts to attract foreign direct investment, particularly in the mining sector, despite a challenging regulatory environment marked by bureaucratic hurdles, corruption, and a flawed banking system. While the government offers various incentives for foreign investors, such as land-use rights and reduced tariffs, securing these benefits can be complicated due to the opaque regulatory framework and the prevalence of state-owned enterprises in key sectors. In 2023, foreign direct investment flows significantly decreased, highlighting the risks and challenges investors face in navigating Tajikistan's investment landscape.