Burkina Faso Country Summary

FATF Status

Burkina Faso is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 February 2025

In February 2021, Burkina Faso made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime, Burkina Faso should continue to work on implementing its action plan to address its remaining strategic deficiency, by implementing an effective targeted financial sanctions regime related to TF and PF.

The FATF notes Burkina Faso’s continued progress across its action plan, however all deadlines have expired and work remains. The FATF urges Burkina Faso to swiftly implement its action plan to address the above-mentioned strategic deficiency as soon as possible as all deadlines expired in December 2022.

European Commission List of Countries with Strategic Deficiencies in their AML/CFT Regimes

Burkina Faso is on the EU Commission list of High Risk jurisdictions which have been identified as having strategic deficiencies in their anti-money laundering and countering the financing of terrorism (AML/CFT) regimes that pose significant threats to the financial system of the European Union (‘high-risk third countries’).

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Burkina Faso was undertaken in 2023. According to that Evaluation, Burkina Faso was deemed Compliant for 9 and Largely Compliant for 19 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.

Burkina Faso ranks 83rd out of 180 countries on Transparency International's 2023 Corruption Perceptions Index, with a significant majority of the population perceiving corruption as prevalent. The State Supreme Audit Authority (ASCE-LC) has uncovered nearly $26 million in financial irregularities since 2022, and various legal actions have been initiated against former officials for corruption-related offenses. The government has implemented measures to combat corruption, including asset declaration laws for officials and the establishment of regulatory bodies like the Autorité de Régulation de la Commande Publique (ARCOP) to oversee procurement processes.

Burkina Faso's economy is characterized by a GDP growth of 3.6% in 2023, with projections of 5.5% for 2024, despite being one of the world's poorest countries, ranked 185 out of 193 on the UNDP Human Development Index. The economy is heavily reliant on agriculture, with over 80% of the population engaged in subsistence farming, while gold mining has emerged as a significant sector, attracting foreign investment and contributing to economic resilience amidst ongoing security challenges.

Burkina Faso actively seeks to attract foreign investment and has established a legal and regulatory framework to ensure fair treatment for foreign investors, including streamlined company registration processes. However, challenges remain, such as the dominance of state-owned enterprises in certain sectors and the need for stronger enforcement of intellectual property protections. The country has seen significant foreign investment in gold mining and is working to enhance opportunities in various sectors, despite a complex tax system and a recent decline in its Corruption Perception Index.