Financial Crime World

Comoros Ranked 160th in Doing Business Index: Efforts to Strengthen Contract Enforcement and Protect Minority Investors Urged

Comoros, a small island nation off the coast of East Africa, has been ranked 160th out of 190 countries in the World Bank’s Doing Business Index. The report highlights several areas where the country can improve its business environment, including strengthening contract enforcement and protecting minority investors.

Judicial Reforms Needed to Enhance Contract Enforcement

  • The report recommends that Comoros strengthen the effectiveness of its judiciary by seeking a judicial system diagnosis from a credible outside partner.
  • Authorities should enhance funding for the judicial system and increase staffing levels, including complementing professional judges with laymen judges.

Regulatory Reforms Required to Create Enabling Environment for Private Investment

  • Comoros aims to improve its regulatory environment by implementing reforms that will attract more private investment.
  • The authorities are seeking help from the World Bank to identify quick wins and achieve a target ranking of 150th out of 190 countries in the Doing Business Index.

Anti-Corruption and AML/CFT Measures Need to be Strengthened

  • Comoros’ anti-corruption framework is weak, with the National Commission for Preventing and Fighting Corruption having been dismantled.
  • Authorities are urged to strengthen asset declaration rules, broaden coverage, and verify accuracy. Additionally, they should establish an institution to replace the former commission.

AML/CFT Efforts Need to be Intensified

  • The Intergovernmental Action Group against Money Laundering in West Africa has identified significant shortcomings in Comoros’ fight against money laundering and terrorist financing.
  • Authorities are advised to adopt a time- bound action plan to strengthen their legal framework, enhance the capacity of the Financial Research Service, and strengthen central bank supervision.

Government Urged to Clarify Status of Economic Citizenship Program

  • The government is encouraged to clarify the status of its Economic Citizenship Program, which has raised concerns about money laundering and corruption.
  • Authorities should ensure that foreigners purchasing passports are fit and proper, and their source of funds is legitimate.

Authorities Must Substantially Strengthen AML/CFT Deficiencies

  • Comoros’ anti-money laundering and combating the financing of terrorism (AML/CFT) regime remains weak, and stronger efforts are needed to address outstanding recommendations from GIABA.
  • Authorities should promptly implement GIABA’s recommendations and ensure the effectiveness of their national AML/CFT regime.

By addressing these areas of improvement, Comoros can create a more conducive business environment, attract more investment, and strengthen its economy.