Guinea Bissau

Sanctions

UN/EU

FATF AML Deficient List

No

Higher Risk

Compliance with FATF 40 + 9 Recommendations
Weakness in Government Legislation to combat Money Laundering
Not on EU White list equivalent jurisdictions
Corruption Index (Transparency International & W.G.I.)
World Governance Indicators (Average Score)
Failed States Index (Political Issues)(Average Score)

Medium Risk

US Dept of State Money Laundering assessment 

Please reload

 

ANTI-MONEY LAUNDERING

 

FATF Status

Guinea Bissau is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

 

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Guinea Bissau was undertaken in 2014. According to that Evaluation, Guinea Bissau was deemed Compliant for 0 and Largely Compliant for 1 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

 

US Department of State Money Laundering assessment (INCSR)

Guinea-Bissau was last deemed a Jurisdiction of Primary Concern in the US Department of State 2018 International Narcotics Control Strategy Report (INCSR). The Overview from that report was as follows: -

Chronic political instability and government dysfunction have meant the Bissau-Guinean authorities have made little headway in fighting narcotics trafficking, money laundering, or other crimes. However, in 2016, the resumption of direct budget support by multilateral institutions has led to greater consistency in payment of salaries for the law enforcement and judicial systems. 

 

The Bijagos Archipelago and the extensive riverine geography of the coastline continue to make the country a transshipment center for drugs. Although the government has taken steps to exert more oversight of military spending, civilian control is still lacking. Narcotics traffickers continue to take advantage of Guinea-Bissau’s remoteness, poverty, unemployment, political malaise, and lack of effective customs and law enforcement to route drugs through the country to European markets. Drug traffickers have been able to infiltrate state structures and often operate with impunity. 

 

Underscoring the extent of complicity with drug trafficking at the highest levels of the government and armed forces, former Navy Chief of Staff Admiral Jose Americo Bubo Na Tchuto was arrested by the U.S. Drug Enforcement Administration in 2013; on his release from prison and return to Guinea-Bissau in November 2016, then-Prime Minister Baciro Dja welcomed Na Tchuto as a “hero of the revolution.” Both Na Tchuto and Guinea-Bissau’s Air Force Chief of Staff Ibraima Papa Camara were designated as drug kingpins by the U.S. Department of the Treasury in 2010 for their roles in narcotics trafficking. Camara remains in his position as Air Force Chief of Staff, despite this designation.

 

 

SANCTIONS

Following the imposition of restrictive measures put in force by the UN, in 2012 the European Union imposed restrictive measures, including asset freezes, directed against certain persons threatening the peace, security or stability of the Republic of Guinea-Bissau. This concerns in particular those who played a leading role in the mutiny of 1 April 2010 and the coup d’etat of 12 April 2012, and whose actions continue to be aimed at undermining the rule of law and the primacy of civilian power, and furthering instability in the country.

The UN has imposed a travel ban against certain persons threatening the peace, security or stability of the Republic of Guinea-Bissau

 

BRIBERY & CORRUPTION

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           16

World Governance Indicator – Control of Corruption              3

 

ECONOMY

Guinea-Bissau is highly dependent on subsistence agriculture, cashew nut exports, and foreign assistance. Two out of three Bissau-Guineans remain below the absolute poverty line. The legal economy is based on farming and fishing, but illegal logging and trafficking in narcotics are also important economic activities. The combination of limited economic prospects, weak institutions, and favourable geography have made this West African country a way station for drugs bound for Europe while trade in illegal logging, food, and fishing is also significant.

 

Guinea-Bissau has substantial potential for development of mineral resources including phosphates, bauxite, and mineral sands. The country’s climate and soil make it feasible to grow a wide range of cash crops, fruit, vegetables, and tubers; however, cashews generate more than 80% of export receipts and are the main source of income for many rural communities.

 

With renewed donor support following elections in April-May 2014 and a successful regional bond issuance, the government of Guinea-Bissau made progress paying salaries, settling domestic arrears, and gaining more control over revenues and expenditures, but was deposed by the President in August 2015. A political stalemate since then has resulted in weak governance.

 

Agriculture - products:

rice, corn, beans, cassava (manioc, tapioca), cashew nuts, peanuts, palm kernels, cotton; timber; fish

Industries:

agricultural products processing, beer, soft drinks

Exports - commodities:

fish, shrimp; cashews, peanuts, palm kernels, raw and sawn lumber

Exports - partners:

India 63.5%, Nigeria 20.3%, China 5.7%, Togo 5.6% (2015)

Imports - commodities:

foodstuffs, machinery and transport equipment, petroleum products

Imports - partners:

Portugal 27.1%, Senegal 12.8%, China 6.5%, Spain 5.5%, Cuba 4.8% (2015)

Country Links

Central Bank of West African States (BCEAO)
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

KnowYourCountry Limited has achieved ISO 9001:2015 Certification for the provision of on-line information of money laundering and sanction information on a country by country basis

© 2019 - KnowYourCountry Limited