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 and widespread corruption hinder effective governance and accountability, while armed groups and criminal networks exploit regional instability, contributing to human trafficking, drug smuggling, and financial crimes.

Chad's economy is characterized by its significant reliance on the oil sector, which has been the primary driver of foreign investment since production began in 2003. Despite being rich in natural resources, the country faces substantial challenges, including low human development indicators, widespread poverty, and a lack of infrastructure, skilled labor, and reliable governance, which hinder private sector growth and investment. The government actively seeks foreign investment across various sectors, including agriculture, energy, and technology, while also attempting to diversify the economy away from oil dependency, but the investment climate remains difficult due to bureaucratic inefficiencies, corruption, and a weak judicial system.