FATF Status

Brunei is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 June 2013

The FATF welcomes Brunei Darussalam’s significant progress in improving its AML/CFT regime and notes that Brunei Darussalam has established the legal and regulatory framework to meet its commitments in its Action Plan regarding the strategic deficiencies that the FATF had identified in June 2011. Brunei Darussalam is therefore no longer subject to FATF’s monitoring process under its on-going global AML/CFT compliance process. Brunei Darussalam will work with the APG as it continues to address the full range of AML/CFT issues identified in its Mutual Evaluation Report.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Brunei Darussalam was undertaken in 2023. According to that Evaluation, Brunei Darussalam was deemed Compliant for 5 and Largely Compliant for 23 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 5 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Brunei has enforced the Prevention of Corruption Act since 1984, which empowers the Anti-Corruption Bureau (ACB) to investigate corruption allegations and related offenses. Despite a generally low level of reported corruption, highlighted by a 2019 ranking of 35th in Transparency International's corruption perception index, two former judges were convicted of embezzlement in 2020. The sultan has publicly condemned corruption, and Brunei is a member of the International Association of Anti-Corruption Authorities, having also ratified the UN Anticorruption Convention.

Brunei's economy is heavily reliant on oil and gas, which contribute about 50% to its GDP, despite ongoing efforts to diversify. The country enjoys a comfortable standard of living for its citizens, who benefit from no taxes and access to free education and healthcare. Brunei's strategic location, stable political climate, and favorable investment policies further enhance its economic environment.

Brunei Darussalam offers a favorable investment climate characterized by an open economy that encourages foreign direct investment (FDI) as part of its economic diversification efforts. The government has streamlined business establishment processes and provides various incentives through the Brunei Economic Development Board, while maintaining no restrictions on foreign ownership of companies. Additionally, Brunei's stable political environment, absence of income and sales taxes, and strategic location in Southeast Asia further enhance its attractiveness to potential investors.