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.

The British Indian Ocean Territory, as a British Overseas Territory, follows the UK's legal framework regarding corruption and bribery. The UK Bribery Act 2010 establishes strict liability for bribery offenses committed globally, requiring companies to implement effective anti-bribery measures to avoid corporate liability. Despite some instances of corruption, the UK maintains a strong legal framework and independent agencies, such as the Serious Fraud Office, to combat bribery and promote high ethical standards in business.

The economy of the British Indian Ocean Territory (BIOT) is predominantly driven by military installations located on Diego Garcia, which limits traditional economic activities such as commercial fishing due to a marine reserve. The territory primarily exports ships, refined petroleum, and diamonds, with Malta as its largest export partner, while heavily relying on imports from the United States and Switzerland to meet military and civilian needs.

The investment climate in the British Indian Ocean Territory is significantly shaped by its role as a military base for the UK and US, which limits private investment opportunities. The absence of a permanent population and industrial activities further restricts economic diversification and investment potential. Future negotiations regarding sovereignty and the potential resettlement of Chagossians may influence the investment landscape, but the territory's strategic military importance remains a dominant factor.