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 largely dependent on the military installations located on Diego Garcia, the only inhabited island, with limited economic activities beyond construction and services supporting the military. Recent increases in oil exports have occurred following resolved disputes with Mauritius, while the establishment of a marine reserve has curtailed commercial fishing, which was previously a source of income. Overall, the territory's economic framework is heavily influenced by joint UK-US military operations, with little local economic development.

The investment climate in the British Indian Ocean Territory is significantly shaped by its role as a military base, resulting in limited private investment opportunities due to the absence of a permanent population. The territory operates under British law, but the lack of a local government restricts commercial activities. Future investment prospects may be influenced by ongoing negotiations regarding sovereignty with Mauritius, although the military presence on Diego Garcia is likely to remain a priority.