FATF Status

Mali is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement  -  23 February 2024

Since October 2021, when Mali made a high-level political commitment to work with the FATF and GIABA to strengthen the effectiveness of its AML/CFT regime, Mali has taken steps towards improving its AML/CFT regime, including by disseminating the results of its assessment of ML/TF risks associated with legal persons, conducting parallel financial investigations for terrorism cases and using other criminal justice measures when TF conviction is not possible, and strengthening its legal framework for targeted financial sanctions. Mali should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) demonstrating timely access to accurate beneficial ownership information; (2) identifying and investigating TF activities in line with the country’s risk profile; (3) implementing TFS related to TF and PF; and (4) implementing a risk-based approach for the monitoring of the NPO sector to prevent abuse for TF purposes.

The FATF notes Mali’s continued progress across its action plan, however all deadlines have now expired and work remains. The FATF encourages Mali to continue to implement its action plan to address the above-mentioned strategic deficiencies as soon as possible.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Mali was undertaken in 2023. According to that Evaluation, Mali was deemed Compliant for 6 and Largely Compliant for 20 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness  & Technical Compliance ratings.

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US Department of State Money Laundering assessment (INCSR) 

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

Mali is not a regional financial center and has no free trade zones or offshore sectors. Illegal proceeds derive primarily from rampant trafficking of everyday commodities, people, small arms, and narcotics across the Algerian, Nigerien, and Mauritanian borders. Al-Qaida in the Islamic Maghreb and other al-Qaida-linked and armed groups, known to operate in the sparsely populated north, are involved in smuggling as well as kidnapping for ransom to generate funds. Mali’s economy is largely cash-based, making it difficult to detect illicit financial activity or track the proceeds of crime. Malian authorities believe the proceeds of trafficking activity in Europe may pass through Malian banks as they are returned to South America or elsewhere, but lack the resources to make a definitive determination.

Mali is a member of the West African Economic and Monetary Union (WAEMU), which also includes Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Niger, Senegal, and Togo. All of the WAEMU members share a common currency, the West African CFA, and have developed similar AML/CFT frameworks, including legal and financial intelligence unit (FIU) structures.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           28

World Governance Indicator – Control of Corruption             21

Corruption is a very high risk for companies operating in Mali. Corruption in public procurement, in the settlement of commercial disputes, and petty corruption are common obstacles for investors. Mali is one of the world's poorest countries and is currently recovering from a multidimensional political, security and economic crisis, which is not yet overcome in parts of the country, particularly in the north. Key anti-corruption laws include the Penal Code and the Law on the Prevention and Repression of Illicit Enrichment, which prohibit active and passive corruption, mostly in the public sector. The maximum punishment for corruption offenses is 20 years' imprisonment or fines, but the anti-corruption provisions are poorly enforced. Mali has ratified the United Nations Convention against Corruption. For further information - GAN Integrity Business Anti-Corruption Portal

Despite enthusiasm for U.S. investment, there are significant obstacles to investing in Mali, including political instability, allegations of corruption, poor infrastructure, and ongoing insecurity throughout the country. Mali remains under transition government rule after a coup d’etat in August 2020, followed by a further consolidation of military power in May 2021. Mali is awaiting key electoral milestones that are to return Mali to constitutional rule and democratic governance by February 2024 – including presidential and legislative elections as well as a constitutional referendum – although observers have noted major challenges in this timeline. In addition to the very fragile security situation and delays related to the adoption of necessary institutional reforms, the intricate sociopolitical environment constitutes an important threat to the return to normal constitutional order. The uncertainty surrounding these dynamics clouds the appeal of much-needed greenfield investment.

The U.S. Department of State maintains a “Level 4: Do Not Travel” travel advisory for Mali due to crime, terrorism, and kidnapping. Continued insecurity throughout Mali is exacerbated by the minimal presence of the state in many areas and has permitted terrorist groups to conduct attacks against Western targets and Malian security forces. Intercommunal violence stemming from conflict between livestock herders and crop farmers in central Mali further contributes to instability.

Mali depends on bilateral donors and multilateral financial institutions, including the World Bank, International Monetary Fund (IMF), and African Development Bank, to fund major development projects, particularly in health, infrastructure, education, and agriculture. Mali received significant financial support in 2020 to address the COVID-19 pandemic and to support post-pandemic economic recovery. Since then, however, donors such as IMF, the World Bank, Denmark and France have partially or fully interrupted their development support to Mali, intensifying the financing needs.

The COVID-19 crisis interrupted a five-year period of consistent growth. As a result, Mali’s growth in 2020 decreased to 0.7 percent against an initial projection of five percent. The transition government took measures to support households and businesses amid this economic slowdown, further increasing its fiscal deficit, which reached 6.2 percent of GDP in 2020, against an initial projection of 3.5 percent.

In 2021, the hope of a post-COVID recovery prevailed, the Central Bank for West African States (BCEAO) projected for Mali a GDP growth of 5.7 percent and average inflation of 2 percent. Transition authorities had projected a 5.5 percent growth rate with inflation of 2 percent for 2022. Transition authorities were relying on these positive projections to reduce fiscal deficit and maintain a sustainable level of debt ratio to GDP. However, the hope for a strong and sustained post-COVID recovery was called into question when ECOWAS and WAEMU introduced severe sanctions in early 2022, disrupting traditional trade corridors, provoking shortfalls of the main imported goods, and putting pressure on government finance. The Russian invasion of Ukraine exacerbated the economic downturn, resulting in increased inflation and slower growth. According to the IMF, GDP growth decelerated to 3.1 for 2021 and could decelerate to 2.5 percent for 2022, while the BCEAO estimated the average inflation rate to 9.7 percent for 2022, the highest level since the 1990s.

Business contacts report both Malian and foreign businesses face corruption in procurement, customs procedures, tax payment, and land administration, although the transition government has committed to undertaking reform, including through improved public financial management practices and increased tax revenues. Efforts to strengthen revenue collection agencies, particularly customs, are ongoing following significant revenue shortfalls in 2018 that the IMF attributed to corruption, weak taxpayer compliance, and fraud. Malian businesses generally view U.S. products favorably and openly search for new partnerships with U.S. firms, particularly in infrastructure, energy, mining, and agriculture.

Country Links

Central Bank of West African States (BCEAO)