Chad Country Summary

FATF Status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Chad was undertaken in 2023. According to that Evaluation, Chad was deemed Compliant for 4 and Largely Compliant for 10 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Chad faces significant challenges related to crime and corruption, with pervasive issues affecting various sectors of government and society. The country's weak institutional framework, compounded by endemic corruption and limited accountability, has created an environment where organized crime flourishes, including human trafficking, drug smuggling, and wildlife crimes, while the government's focus on security rather than effective governance further undermines resilience to these threats.

Chad's economy is characterized by its reliance on the oil sector, which has dominated since production began in 2003, while agriculture and livestock breeding also play crucial roles in employing the majority of the population. Despite being a member of the Central African Economic and Monetary Community (CEMAC) and having a generally positive stance towards foreign direct investment (FDI), the investment climate remains challenging due to inadequate infrastructure, low GDP growth, and a lack of skilled labor. The government actively seeks foreign investment in various sectors, including agribusiness and renewable energy, but potential investors face hurdles such as high corporate tax rates, bureaucratic inefficiencies, and a weak judicial system, which complicate contract enforcement and dispute resolution.