Equatorial Guinea Country Summary

FATF Status

Equatorial Guinea 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 Equatorial Guinea was undertaken in 2024. According to that Evaluation, Equatorial Guinea was deemed Compliant for 5 and Largely Compliant for 9 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Equatorial Guinea faces significant challenges with widespread corruption and weak governance, as evidenced by its low rankings in corruption indexes. Despite the introduction of some anti-corruption measures and the ratification of international conventions, the implementation of laws remains ineffective, allowing officials to engage in corrupt practices without accountability. Civil society organizations are hindered by government intimidation, and the judicial system lacks transparency, particularly in public contract awards and labor disputes, further exacerbating the corruption issue.

Equatorial Guinea's economy is heavily reliant on foreign direct investment (FDI) in the oil and gas sector, which significantly contributes to government revenues. However, the country faces challenges such as a lack of clear business regulations, underinvestment in critical infrastructure, and a banking sector burdened by nonperforming loans and low liquidity. Despite efforts to diversify the economy and attract private sector participation, concrete steps towards improving the investment climate have been limited.

The investment climate in Equatorial Guinea is characterized by a lack of clear regulations and infrastructure, which deters foreign direct investment (FDI). Despite the government's intentions to promote private sector participation and economic diversification, concrete actions have been lacking, leading to uncertainty among potential investors. Additionally, the removal of the local partner requirement for non-oil sectors has not significantly improved the situation, as foreign investors still face overwhelming bureaucracy and inconsistent enforcement of local content rules.