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 faces challenges with rising corruption, particularly in government tender procurements, prompting the government to initiate forensic audits and investigations into high-profile cases. Despite these issues, the country has established a robust framework for combating corruption and organized crime, including the Directorate on Corruption and Economic Crime and various legislative measures aimed at addressing money laundering and financial crimes.

In terms of criminal activities, Botswana serves as a transit point for human trafficking, drug trafficking, and smuggling, with local and foreign networks involved in these illicit operations. The government has made strides in victim support for trafficking cases, though challenges remain, such as porous borders that facilitate smuggling and the need for enhanced judicial resources to effectively address these crimes.

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.