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.

Corruption is a significant barrier to economic activity and foreign investment in Chad, affecting various government sectors such as procurement and taxation. Despite having an independent Court of Auditors, oversight remains ineffective, and anti-corruption measures are poorly enforced, with many officials engaging in corrupt practices. Additionally, Chad faces challenges from organized crime, including human trafficking and drug smuggling, exacerbated by weak governance and a lack of accountability.

Chad's economy is heavily reliant on the petroleum sector, which has dominated since oil production began in 2003, while agriculture and livestock breeding also play significant roles in employing the majority of the population. Despite its rich natural resources, Chad faces numerous economic challenges, including low human development, high poverty rates, and a lack of infrastructure, skilled labor, and reliable governance, which hinder private sector growth and foreign investment.

Chad's investment climate is characterized by significant challenges, including inadequate transport infrastructure, low GDP growth, and issues with governance and contract enforcement. Despite these obstacles, the government actively seeks foreign investment, particularly in sectors like agribusiness, energy, and mining, and has established policies that generally favor foreign direct investment. Opportunities exist for experienced investors who can navigate the complexities of the local market, often in partnership with trusted local entities.