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
Criminality
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 while instances of bribery and corruption exist in the UK, they are not seen as significant barriers for U.S. investors. The UK has implemented the Bribery Act 2010, which provides a comprehensive legal framework to combat bribery, including provisions for prosecuting offenses committed abroad. Additionally, the UK faces challenges with human trafficking, drug markets, and organized crime, but the government is committed to tackling these issues through effective law enforcement and international cooperation.
Economy
The economy of the British Indian Ocean Territory is predominantly driven by military installations on Diego Garcia, with limited industrial or agricultural activities. Economic output is heavily influenced by the presence of US and UK military forces, and while oil exports have increased, the establishment of a marine reserve has restricted commercial fishing, which was previously a source of income.
The investment climate in the British Indian Ocean Territory is heavily influenced by its role as a military base, which limits opportunities for private investment. With governance administered from London and no local legislative framework to support typical investment activities, the territory lacks a conventional investment environment. The absence of a permanent population and the focus on military operations further restrict economic diversification and private sector development.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings