Zimbabwe Country Summary
Sanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Higher Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Zimbabwe is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies
Latest FATF Statement - 4 March 2022
The FATF welcomes Zimbabwe’s significant progress in improving its AML/CFT regime. Zimbabwe has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in October 2019. Zimbabwe is therefore no longer subject to the FATF’s increased monitoring process.
Zimbabwe should continue to work with ESAAMLG to improve further its AML/CFT system, including by ensuring its oversight of NPOs is risk-based and in line with the FATF Standards.
European Commission list of countries with strategic deficiencies in their AML/CFT regimes
Zimbabwe is no longer on the EU Commission list of high risk countries.
Compliance with FATF Recommendations
The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Zimbabwe was undertaken in 2024. According to that Evaluation, Zimbabwe was deemed Compliant for 20 and Largely Compliant for 17 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
Zimbabwe, as a UN member, must adhere to sanctions imposed by the UN Security Council to maintain international peace and security. These sanctions can include economic measures, arms embargoes, and travel bans, with a focus on protecting the rights of those targeted. Currently, there are 15 ongoing sanctions regimes addressing issues like political conflicts and counter-terrorism, administered by a sanctions committee.
The EU and US have imposed sanctions on Zimbabwe, including an arms embargo and asset freezes on certain government officials. While the EU recently renewed its restrictive measures, it emphasizes that these do not impact the general population or economy of Zimbabwe. The sanctions aim to address human rights violations and support a peaceful transition in the country.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 21 |
| World Bank: Control of Corruption Percentile Rank | 10 |
Corruption is a significant barrier to business in Zimbabwe, with the country ranking poorly on governance and transparency indices. Despite the existence of anti-corruption laws and the establishment of the Zimbabwe Anti-Corruption Commission, enforcement is selective, leading to a lack of accountability for high-ranking officials. Additionally, Zimbabwe faces various criminal challenges, including human trafficking, illicit trade, and drug trafficking, compounded by weak governance and a lack of political will to combat organized crime.
Economy
Zimbabwe possesses significant economic potential due to its rich natural resources, including the largest lithium reserves in Africa, and a skilled labor force. However, the country faces numerous challenges, including power shortages, underutilized irrigation systems, and a struggling agricultural sector impacted by climate phenomena. Despite government efforts to attract foreign investment through policy reforms, issues such as corruption, inconsistent regulations, and high debt levels continue to hinder economic growth.
Zimbabwe presents a challenging investment climate despite its significant economic potential, characterized by rich natural resources and a skilled workforce. The government has adopted an "open for business" policy to attract foreign direct investment, particularly in sectors like mining, agriculture, and tourism, while offering incentives such as tax breaks. However, issues such as policy inconsistency, corruption, and inadequate protection of property rights continue to hinder investor confidence.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings