British Indian Ocean Territory Country Summary
Sanctions
Low Concern
FATF AML Deficient List
Low Concern
Terrorism
Low Concern
Corruption
Low Concern
US State ML Assessment
High Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low 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
The British Indian Ocean Territory is a British Overseas Territory of the United Kingdom. Information for the United Kingdom may be included below:
FATF Status
The United Kingdom 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 the United Kingdom was undertaken in 2022. According to that Evaluation, the United Kingdom was deemed Compliant for 24 and Largely Compliant for 15 of the FATF 40 Recommendations. It remains rated Highly Effective for 4 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are no international sanctions currently in force against this country
Bribery & Corruption
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 71 |
| World Bank: Control of Corruption Percentile Rank | 91 |
The British Indian Ocean Territory is a British Overseas Territory, and the UK has established a robust legal framework to combat bribery and corruption, primarily through the Bribery Act 2010. This Act applies to UK citizens and companies, as well as foreign entities doing business in the UK, holding them accountable for bribery committed both domestically and internationally. The UK promotes high ethical standards in public services, and while isolated instances of corruption may occur, they do not significantly hinder business operations.
Economy
The economy of the British Indian Ocean Territory is largely driven by military installations on Diego Garcia, with limited income generated from oil exports and commercial fishing. The territory has no industrial or agricultural activities, relying instead on construction projects and services to support military facilities, while exports consist mainly of ships, refined petroleum, and diamonds.
The investment climate in the British Indian Ocean Territory is significantly shaped by its role as a military base, which limits private investment opportunities. The absence of a permanent population and commercial infrastructure further hinders economic diversification and growth of the private sector. Additionally, ongoing negotiations regarding sovereignty and international legal disputes introduce uncertainty for potential investors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
