Madagascar Country Summary

FATF Status

Madagascar 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 Madagascar was undertaken in 2024. According to the follow-up Evaluation, Madagascar was deemed Compliant for 9 and Largely Compliant for 14 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective 0 of the Effectiveness ratings.

Madagascar is grappling with significant challenges related to crime and corruption, with various forms of illicit activities, including human trafficking, illegal logging, and drug trafficking, being prevalent. The government's anti-corruption initiatives, such as the National Strategy to Fight Corruption, face obstacles due to limited resources, political interference, and a justice system influenced by private interests, undermining efforts to establish accountability and integrity.

Madagascar's economy exhibits potential due to its young workforce and rich natural resources, particularly in sectors such as textiles, mining, energy, and telecommunications. While the government has made strides to improve the investment climate by welcoming foreign direct investment (FDI) and enhancing business registration processes through the Economic Development Board of Madagascar, challenges remain, including bureaucratic inefficiencies, corruption, and regulatory hurdles that often deter foreign investors. Despite recent reforms aimed at increasing transparency and modernizing the tax system, the country still grapples with significant issues related to governance, legal enforcement, and the overall business environment, which can complicate investment decisions.