Bhutan Country Summary
Sanctions
Lower Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Lower Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
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Anti Money Laundering
FATF Status
Bhutan is not 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 Bhutan was undertaken in 2023. According to that Evaluation, Bhutan was deemed Compliant for 7 and Largely Compliant for 26 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are no international sanctions currently in force against this country
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 72 |
| World Bank: Control of Corruption Percentile Rank | 91 |
Economy
Bhutan's economy is predominantly driven by agriculture, forestry, tourism, and hydroelectric power, with agriculture being the primary source of livelihood for over half of its population. The country has seen rapid economic growth, largely due to investments in hydropower, which significantly contributes to its revenue, especially through exports to India. While the industrial sector is still developing, key industries include cement and processed fruits, and the government is actively improving the investment climate to attract foreign direct investment.
Bhutan's investment climate is improving, bolstered by government initiatives to attract foreign direct investment, especially in the hydropower and technology sectors. The establishment of a free trade agreement with India enhances trade and investment opportunities, while policies aimed at simplifying regulations and providing incentives for foreign investors contribute to a more favorable business environment.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings