FATF AML Deficiency List
Non - Compliance with FATF MER Recommendations
Corruption Index (Transparency International & W.G.I.)
World Governance Indicators (Average Score)
Togo is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Togo was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Togo was deemed Compliant for 0 and Largely Compliant for 4 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.
US Department of State Money Laundering assessment (INCSR)
Togo 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: -
Togo’s porous borders, susceptibility to corruption, and large informal sector make it vulnerable to illicit transshipments and small-scale money laundering. Most narcotics passing through Togo are destined for European markets. Drug and wildlife trafficking, trafficking in persons, corruption, misappropriation of funds, tax evasion, and smuggling are the major crimes in Togo. The country is used as a transit point for contraband ivory smuggling. The country’s small financial infrastructure, dominated by regional banks, makes it a less attractive venue for money laundering through financial institutions.
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index 29
World Governance Indicator – Control of Corruption 25
This small, sub-Saharan economy depends heavily on both commercial and subsistence agriculture, which provides employment for a significant share of the labour force. Some basic foodstuffs must still be imported. Cocoa, coffee, and cotton generate about 40% of export earnings with cotton being the most important cash crop. Togo is among the world's largest producers of phosphate and seeks to develop its carbonate phosphate reserves.
The government's decade-long effort, supported by the World Bank and the IMF, to implement economic reform measures, encourage foreign investment, and bring revenues in line with expenditures has moved slowly. Togo completed its IMF Extended Credit Facility in 2011 and reached a Heavily Indebted Poor Country debt relief completion point in 2010 at which 95% of the country's debt was forgiven. Togo continues to work with the IMF on structural reforms. Progress depends on follow through on privatization, increased openness in government financial operations, progress toward legislative elections, and continued support from foreign donors.
Togo’s 2015 economic growth remained steady at 5.4%, largely driven by infusions of foreign aid, infrastructure investment in the port and mineral sectors, and improvements in the business climate. Foreign direct investment inflows have slowed in recent years.
Agriculture - products:
coffee, cocoa, cotton, yams, cassava (manioc, tapioca), corn, beans, rice, millet, sorghum; livestock; fish
phosphate mining, agricultural processing, cement, handicrafts, textiles, beverages
Exports - commodities:
reexports, cotton, phosphates, coffee, cocoa
Exports - partners:
India 14.6%, Burkina Faso 11.3%, China 11.3%, Benin 9.6%, Ghana 9%, Lebanon 8.3%, Nigeria 6.1%, Niger 5.9% (2015)
Imports - commodities:
machinery and equipment, foodstuffs, petroleum products
Imports - partners:
China 22.9%, Belgium 20.3%, Netherlands 11.9%, France 6.6%, India 4.8%, Singapore 4.4% (2015)
Investment Climate - US State Department
After years of relative economic underperformance, Togo recently has implemented various reforms to make the country more attractive to foreign investment. Foreign investment has increased over the last few years, signaling rising investor confidence and highlighting Togo’s emergence from years of political and economic isolation. To complement its business reforms, Togo continued its ambitious plan of infrastructure modernization to develop and leverage Lomé’s position as a regional trading center and transport hub. Togo has also completed hundreds of kilometers of refurbished roadways, expanded and modernized of the Port of Lomé, and made significant progress on a new international airport terminal that should open for business in 2016.
Challenges remain, however, for improving the business climate for the private sector. This is particularly true in such important areas as administrative and judicial transparency and efficacy, property rights, and banking services. Corruption also remains a common problem in Togo, especially for businesses. Often, “donations” or “gratuities” result in shorter delays for obtaining registrations, permits, and licenses, thus resulting in a competitive advantage for companies that are willing and able to engage in such practices. Although Togo has government bodies charged with combatting corruption, corruption-related charges are rarely brought or prosecuted.
With an improving investment climate and prospects on the infrastructure front, Togo’s steadily improving economic outlook has caused some investors to take a second look, and Togo offers opportunities for U.S. firms interested in doing business locally and in the sub-region.
Other Useful Links