Tajikistan Country Summary

FATF Status

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

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 Tajikistan was undertaken in 2024. According to that Evaluation, Tajikistan was deemed Compliant for 7 and Largely Compliant for 29 of the FATF 40 Recommendations. The Effectiveness & Technical Compliance ratings were not assessed and it remains Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness ratings.

Tajikistan faces significant challenges related to crime and corruption, with anti-corruption legislation largely ineffective due to politically motivated enforcement. The country is a major transit point for human trafficking and drug smuggling, while endemic corruption permeates various sectors, undermining public trust and investment opportunities.

The government's control over the judicial system and oversight institutions hampers effective governance, and civil society organizations struggle under restrictive conditions. Additionally, the economic environment is marred by a large shadow economy and inadequate anti-money laundering measures, further complicating efforts to combat crime and corruption.

Tajikistan's economy is characterized by a strong government interest in attracting foreign direct investment (FDI), particularly in sectors like mining, although potential investors face significant bureaucratic challenges, corruption, and a flawed banking system. The government's National Development Strategy aims to modernize various sectors and promote a green economy, yet the regulatory environment remains opaque and often favors state-owned enterprises, which dominate key industries. Despite the government's initiatives to simplify business processes and offer investment incentives, the practical hurdles and risks associated with corruption and inefficiency continue to deter foreign investment, leading to a notable decline in FDI flows in recent years.