Sierra Leone Country Summary

FATF Status

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

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Sierra Leone was undertaken by the Financial Action Task Force (FATF) in 2007. According to that Evaluation, Sierra Leone was deemed Compliant for 2 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.

Corruption is a major issue in Sierra Leone, particularly affecting government procurement and regulatory processes, despite the establishment of the Anti-Corruption Commission (ACC) and various legislative measures aimed at combating graft. The country has seen some improvement in its Transparency International Corruption Index ranking, but concerns remain regarding selective prosecution and the effectiveness of anti-corruption efforts. Additionally, Sierra Leone faces challenges related to human trafficking, illegal trade, and a weak judicial system, which hinder its overall governance and economic development.

Sierra Leone's economy, which has shown resilience since emerging from a decade-long civil war in 2002, faced significant setbacks due to the Ebola epidemic in 2014 and the COVID-19 pandemic in 2020. Despite these challenges, the country possesses rich mineral reserves and natural resources, with ongoing efforts to attract foreign direct investment (FDI) to stimulate economic recovery and growth. However, high inflation, currency depreciation, and infrastructural deficiencies continue to pose significant challenges to the economy.

Sierra Leone presents significant investment potential due to its rich mineral reserves, fertile agricultural land, and favorable climate. The government actively encourages foreign direct investment (FDI) across various sectors, particularly in infrastructure and energy, while also establishing the National Investment Bureau to streamline business operations. However, challenges such as poor infrastructure, high corruption levels, and regulatory inefficiencies continue to hinder the investment climate.