Botswana Country Summary

FATF Status

Botswana is no longer 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 Botswana was undertaken in 2022. According to that Evaluation, Botswana was deemed Compliant for 7 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Botswana is grappling with rising levels of corruption, as evidenced by increased media reports and a notable uptick in bribery among government officials. Despite the government's commitment to combat corruption through various legal frameworks and the prosecution of high-level officials, challenges remain, particularly with porous borders that facilitate smuggling and organized crime, including human trafficking and drug trafficking.

Botswana's economy is characterized by its upper middle-income status, with a per capita income of $7,738.90 as of 2022, and is heavily reliant on diamond mining, which accounts for over 80% of its export earnings. The country benefits from a stable economic and political environment, bolstered by sound macroeconomic policies, fiscal discipline, and a well-capitalized banking system, which have led to favorable credit ratings from agencies like Standard & Poor’s and Moody’s. While Botswana aims to diversify its economy beyond mining, it faces challenges such as rising unemployment, particularly among youth, and perceptions of increasing corruption, necessitating ongoing government initiatives to enhance investment attractiveness and economic resilience.