On 28 August, the ESAAMLG published Eritrea’s first FATF-style Mutual Evaluation Report (MER), unveiling serious deficiencies in its anti-money laundering and countering financing of terrorism (AML/CFT) framework. Key takeaways include:
-Eritrea still lacks an operational Financial Intelligence Unit (FIU), with no concrete budget or plan to get it running.
-There is no legal basis for mutual legal assistance, and to date, no criminal requests have been made or received.
-Understanding of ML/TF risks is very weak across both authorities and the private sector, and risk-based mitigation measures are largely non-existent.
-Authorities responsible for freezing, seizing, or confiscating illicit assets have either not begun operations or do not yet possess adequate capacity.
While Eritrea benefits from high-level political commitment as a member of ESAAMLG, the failures to establish core institutions and legal tools are serious. Without urgent reform, there is a real risk of Eritrea’s intellectual and financial integrity being compromised in the global AML/CFT regime.