FATF Status

Cote D’Ivoire 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 Cote D'Ivoire was undertaken in 2023. According to that Evaluation, Cote D'Ivoire was deemed Compliant for 1 and Largely Compliant for 8 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

First follow-up report of Côte d’Ivoire

The first follow-up report of Côte d’Ivoire revealed that the country had made considerable progress in addressing the identified deficiencies in its AML/CFT regime. In particular, it has prepared a draft law on the suppression of terrorist acts, which had been forwarded to the General Secretariat of the Government in June 2013. Côte d’Ivoire also made some efforts to address deficiencies relating to Recommendations 13 and Special Recommendation IV and demonstrated the result of these efforts by providing statistics on suspicious transaction reports received by the FIU. The country also issued AML/CFT guidelines to financial institutions to ensure the effective implementation of customer due diligence measures. However, the country is yet to address the following outstanding deficiencies   in the country’s AML/CFT system: non-criminalization of the full range of predicate offences of money laundering such as terrorism, financing of terrorist organizations and individual terrorists; migrant smuggling, insider trading and market manipulation; and speedy criminalization of self-laundering. Although Côte d’Ivoire had ratified 18 conventions on terrorism, the country has not adequately criminalized terrorist financing. It was observed that notwithstanding the confiscation of certain proceeds of crime, Côte d’Ivoire is yet to adopt a policy for the systematic and effective implementation of the legislation on freezing, seizure and confiscation  of proceeds and instrumentalities of crime. Côte d’Ivoire was commended for the progress made considering its post- conflict situation, and was encouraged to urgently address the remaining deficiencies   in its AML/CFT system to protect its economy from the vagaries of money launderers and financing of terrorism. Côte d’Ivoire was retained on Expedited Regular Follow-up, and was therefore directed to submit its second follow-up report to the Plenary in November 2014.

US Department of State Money Laundering assessment (INCSR)

Cote D’Ivoire was deemed a Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Since the end of the post-electoral crisis in April 2011, the political situation in Cote d’Ivoire has stabilized. The country held a peaceful and credible presidential election on October 25, 2015, which turned a symbolic page on its conflict-ridden past. Despite a more stable political environment and increased prosecutions in 2015, Ivoirians continue to be involved in regional criminal activities, such as the smuggling of consumer goods and agricultural products, and in the subsequent laundering of the proceeds. Smuggling over Cote d’Ivoire’s porous borders, motivated in part by a desire to avoid duties or taxes or to sell goods at a higher profit, generates illicit funds that are primarily laundered via informal value transfer systems, such as money service businesses or exchange houses, and via mobile telephone payments or transfers (M- Payments).

Many Ivoirians use informal cash couriers, money and value transfer services (MVTS), hawaladars, and goods transportation companies to transfer funds domestically and within the region.  There is no regulation of domestic informal MVTS.

There are concerns about the increase in cyber theft through online commercial transactions. In addition, Ivoirian authorities believe criminal enterprises use the formal banking system, as well as the used car, real estate, and counterfeit pharmaceutical drug industries to launder funds. The use of Ivoirian territory as a transshipment point for drugs from South America to Europe has decreased with the creation of new routes by drug traffickers after the Arab spring and tightened airport security.  Hezbollah is present in Cote d’Ivoire and conducts fundraising activities, mostly among the large Lebanese expatriate community in the country.

Cote d’Ivoire still remains under sanctions imposed by the UN Security Council (UNSC) stemming from the civil war and political/military crisis period. On April 29, 2014, the UNSC lifted the ban on exporting rough diamonds from Cote d’Ivoire and partially lifted the arms embargo, allowing the purchase of small-caliber weapons while still requiring Cote d’Ivoire to seek a UNSC exemption for purchases of certain other arms.  Additionally, several officials of the former regime are subject to targeted financial sanctions by the United States, the UK, and the EU. The government continues to work toward the goal of having the international sanctions lifted for some of these officials.  The country was found Kimberley Process compliant in November 2013, and legal exportation of diamonds under the Kimberley Process began in March 2015.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           40

World Governance Indicator – Control of Corruption             42

Côte d’Ivoire offers exciting new opportunities for U.S. investment. It boasts one of the fastest sustained economic growth rates in sub-Saharan Africa owing to nearly a decade of real GDP growth averaging 8.2 percent (between 2012 and 2019) that proved resilient during the worst of the pandemic (registering 2 percent growth in 2020 and 7 percent in 2021). Despite global external economic shocks, growth is projected to continue at 5.5 percent in 2022 and 6.2 percent in 2023. As the economic engine of Francophone West Africa, Côte d’Ivoire accounts for more than 39 percent of the total West African Monetary Union (WAEMU). The Euro-pegged CFA franc has mitigated some of the fallout from Russia’s invasion of Ukraine like spikes in inflation. Thus far, inflation has remained relatively stable ranging from 4.7 to 5 percent in 2022.

Côte d’Ivoire provides vital supply lines to the Sahel and wider Francophone West African region. Visits by Deputy Secretary of Commerce Don Graves and World Bank nominee Ajay Banga reflect its regional importance and strong bilateral relationship with the United States. Ivoirian authorities continue to prioritize structural reforms to improve the business environment, modernize public administration, increase human capital, and boost productivity and private sector development.

With almost 70 percent of the target population vaccinated for COVID-19 and an economy that remained resilient throughout the pandemic, Côte d’Ivoire stands as an example of astute policymaking. The government’s National Development Plan and Strategy 2030 seeks to digitize the government for a more transparent and inclusive economy. It directs the government to implement policies in support of transforming the economy away from a commodity export focus to increase value-added processing contributions to GDP and job creation. Together, these efforts and its significant manufacturing base, second only to Nigeria in the region, offer opportunities for U.S. technology, ingenuity, and services.

In February, Fitch Ratings credit agency reaffirmed the country’s long-term foreign-currency issuer default rating at BB- with a stable outlook and thereby, confirmed Côte d’Ivoire’s strong growth prospects against low development indicators and high commodity dependence. The IMF highlighted Côte d’Ivoire’s measures to strengthen macroeconomic stability and reverse widening fiscal and external imbalances in April as part of a staff-level agreement on economic policies and reforms to be supported by a new 40-month arrangement of approximately $3.5 billion under the Extended Fund Facility/Extended Credit Facility.

The discovery of gas and petroleum reserves and current negotiations for a regional energy compact with the Millennium Challenge Corporation (MCC) reinforces Côte d’Ivoire’s role as a regional energy hub. The country’s investment in public-private partnerships in the energy sector reflects this growth from $5.5 million in 2011 to more than $810 million in 2020. The country remains a primary regional electricity supplier to neighboring countries, such as Mali and Burkina Faso. A potential MCC regional compact with Côte d’Ivoire aims to improve regional energy infrastructure and distribute energy across West Africa in a more cost-effective way. Côte d’Ivoire still maintains several unexplored blocks, or blocks under exploration, and aims to attract more industrial players. Côte d’Ivoire often offers take-or-pay contracts as guarantees solely in the gas industry. In line with its COP26 commitments, Côte d’Ivoire seeks to invest further in new renewable energy production, targeting 45 percent in renewable energy by 2030, such as solar and biomass.

U.S. businesses operate successfully in several Ivoirian sectors, including oil and gas exploration and production; agriculture and value-added agribusiness processing; power generation and renewable energy; IT services; the digital economy; banking; insurance; and infrastructure. Abidjan hosts one of the region’s busiest ports with San Pedro port rising in importance and connectivity. The competitiveness of U.S. companies in information technology and cybersecurity services is exemplified by offering innovative solutions using the latest technologies and promoting values of transparency and rule of law. American firms continued to urge the Ivoirian government to tangibly improve doing business indicators, including systemic administrative delays associated with highly bureaucratic decision-making, to attract more foreign direct investment. Company representatives comment on investment climate challenges citing point-of-entry challenges obtaining financing and necessary government approvals to operate in Côte d’Ivoire. An overly complicated tax system and slow, opaque government decision-making processes also hinder investment. In June 2022, the government announced an investment-focused Anglophone Desk, a one-stop shop bridging the language gap for foreign investors to facilitate Anglophone investment and diversify foreign investment partners; the proposed Desk is a valuable commitment but not yet operational.

Côte d’Ivoire is successfully implementing its part of the Abidjan-Lagos Corridor, a sub-regional agreement between Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire aiming to facilitate the free flow of goods and people and promote regional integration in Coastal West Africa. It is a member of the African Continental Free Trade Area (AfCFTA), one of the first countries in the region to ratify the agreement. These frameworks will facilitate trade within the region and continent, widening opportunities for international business. This year, the government extended the new industrial zone Akoupé-Zeudji, reinforcing accessibility and availability to industrial lands for potential investors. The government is close to finishing a highway connecting the two major ports: Port of Abidjan and Port of San Pedro. In August 2022, the U.S. Coast Guard removed Côte d’Ivoire from its Port Security Advisory list, noting the country is maintaining effective anti-terrorism measures in its ports. This reflects growing importance of Côte d’Ivoire as a maritime security partner and location for more regional cargo and logistics hub activities.

The government is committed to strengthening security systems in the northern areas of the country to prevent growing political instability in northern and western neighbors, Burkina Faso, Mali, and Guinea, from dampening investor confidence or increasing insecurity in the country. The U.S. government is supporting these efforts through the Coastal West Africa Strategy to Prevent Conflict and Promote Stability. Increased investment in this important region offers opportunities for U.S. companies.

Côte d’Ivoire possesses a strong, youthful workforce with more than 70 percent of its population under 35. The government has put in place incentives and programs to increase youth employment. One potential area for growth is the information technology sector. Internet and telephone users in both urban and rural areas have considerably increased, with more cell phones than people, facilitating communication within the country. Côte d’ivoire designed a national strategy for digital development, estimated at $ 3 Billion, aiming to develop digital infrastructures and services.

The government has begun to streamline operating procedures in some sectors, such as procurement, taxation, and regulation. The government has identified VAT (Value Added Tax), mining, digitalization, and property taxes as key areas for broadening the tax base and improving state revenues; however, challenges remain. New public procurement procedures adopted in 2019 were implemented in 2021, including implementation of an e-procurement module, and improved evaluation, prioritization, selection, and monitoring procedures. This is a work in process, and investors have expressed concerns that these procedures are not consistently or transparently applied. Similar concerns circulate about tax procedures, especially retroactive assessments based on changes in tax formulas. Other challenges include low levels of literacy, skills development, and income; weak access to credit for small businesses; corruption; and immediate need to broaden the tax base to relieve some of the tax-paying burden on businesses.

The government has put in place SPACIA, an online platform to report corruption. Strategic audits also led to the arrest of several allegedly corrupt officials. Transparency International revealed in 2023 that Côte d’Ivoire improved its corruption perception index, moving six places above last year’s ranking and breaking into the top 100. Senior government officials emphasized their political will to fight corruption scourge, which continues to hinder Côte d’Ivoire’s economy.

Country Links

BCEAO - Banque Cemtrale Des Etats De L'Afrique

National Unit for the Processing of Financial Information in Côte d'Ivoire (CENTIF-CI)