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.

Sierra Leone grapples with significant challenges related to corruption, which is pervasive in government procurement, regulatory enforcement, and customs clearance, despite the establishment of the Anti-Corruption Commission (ACC) and various legislative measures aimed at curbing graft. The country also faces serious issues with human trafficking, illegal logging, and drug trafficking, compounded by weak governance, inadequate law enforcement resources, and a judicial system vulnerable to manipulation, all of which hinder resilience against crime and corruption.

Sierra Leone's economy, emerging from a decade-long civil war in 2002, has shown resilience and potential for growth, particularly in sectors such as mining, agriculture, and infrastructure. Despite facing significant setbacks from the Ebola epidemic and the COVID-19 pandemic, the government has actively sought foreign direct investment (FDI) to stimulate recovery and development, implementing policies to create a more investor-friendly environment. However, challenges such as high inflation, currency depreciation, inadequate infrastructure, and regulatory hurdles continue to hinder investment, while opportunities remain in various sectors supported by preferential trade agreements and a focus on public-private partnerships.