Sudan Country Summary

FATF Status

Sudan is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 23 October 2015

The FATF welcomes Sudan’s significant progress in improving its AML/CFT regime and notes that Sudan has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in February 2010. Sudan is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Sudan will work with MENAFATF as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

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 Sudan was undertaken by the Financial Action Task Force (FATF) in 2013. According to that Evaluation, Sudan was deemed Compliant for 0 and Largely Compliant for 4 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.

Corruption is pervasive in Sudan, with the previous Bashir regime failing to enforce anti-corruption laws effectively, leading to widespread impunity for officials. Despite some legal frameworks for financial disclosure and anti-corruption measures established under the 2019 Constitutional Declaration, these efforts have been undermined by subsequent political turmoil and the military takeover in 2021. Additionally, Sudan faces significant challenges from organized crime, human trafficking, and a lack of effective governance, which further complicate the country's efforts to combat corruption and promote accountability.

Sudan's economy has faced significant challenges following the military takeover in October 2021, which halted many of the reforms initiated by the Civilian-Led Transitional Government (CLTG). The country is grappling with economic uncertainty, a depreciating national currency, and shortages of essential goods, compounded by the suspension of international financial assistance. Despite these difficulties, sectors such as mineral extraction and agriculture remain of interest to foreign investors, although issues like poor infrastructure and endemic corruption pose substantial barriers to investment.

Sudan's investment climate is characterized by significant interest from foreign investors, particularly in sectors such as mineral extraction and agriculture, despite challenges like poor infrastructure and endemic corruption. The government actively encourages foreign direct investment through various incentives, including tax exemptions and land grants, although there are restrictions in certain sectors and a requirement for foreign investors to partner with local entities. However, the ongoing political turmoil and military control have led to economic uncertainty, impacting the overall attractiveness of the Sudanese market.