Eritrea Country Summary
Higher Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Medium Concern
Terrorism
Medium Concern
Corruption
Higher Concern
US State ML Assessment
Lower Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
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Anti Money Laundering
FATF Status
Eritrea 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 Eritrea was undertaken in 2025. According to that Evaluation, Eritrea was deemed Compliant for 0 and Largely Compliant for 4 of the FATF 40 Recommendations. It was assessed Highly Effective for 0 and Substantially Effective 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
Multiple countries maintain active sanctions against Eritrea: the United States (OFAC), the European Union, the United Kingdom, Australia, and Canada, targeting Eritrean military officials, the ruling-party-linked entities, and individuals tied to human rights abuses or regional conflicts. These measures include asset freezes, travel bans, and trade restrictions, while UN sanctions are currently none as they were lifted in 2018, and Japan, New Zealand, Switzerland, and the Arab League have no active autonomous measures.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | NA |
Eritrea faces significant challenges related to crime and corruption, with laws in place to criminalize corruption among public officials, yet limited transparency raises questions about their enforcement. The government is perceived to take corruption seriously at high levels, but petty corruption is prevalent locally, compounded by a lack of independent oversight and civil society organizations to address these issues.
Human trafficking and smuggling are critical problems, exacerbated by the government's exploitation of citizens through forced labor and strict exit controls. Organized crime is primarily state-embedded, with the military and ruling party involved in various illicit activities, while the judiciary remains weak and susceptible to corruption, resulting in a climate of impunity and limited resilience against organized crime.
Economy
Eritrea's economy presents significant challenges for foreign investment, particularly from the U.S., due to stringent government controls, a lack of a commercial code, and economic sanctions. The state dominates the economy, with most large enterprises either state-owned or controlled by the ruling People's Front for Democracy and Justice (PFDJ), while the private sector consists mainly of small, family-owned businesses. Furthermore, the national currency is non-convertible, and there are severe restrictions on profit repatriation, making the investment climate highly unfavorable and opaque, with little transparency or legal recourse for investors.
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