Christmas Island is a territory of Australia. Information for Australia may be included below:

FATF Status

Australia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Australia was undertaken in 2024. According to that Evaluation, Australia was deemed Compliant for 18 and Largely Compliant for 12 of the FATF 40 Recommendations. It remains Highly Effective for 1 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Australia has a robust legal framework to combat corruption, characterized by transparent government procurement and active participation in international anti-corruption efforts. The Criminal Code Act 1995 criminalizes bribery of foreign officials, imposing severe penalties for violations, while various national and state agencies work to ensure integrity in public service. Despite some corruption risks, particularly in foreign bribery and the mining sector, Australia is perceived as having low corruption levels, which does not deter U.S. businesses from investing or exporting to the country.

Christmas Island's economy is primarily driven by tourism and phosphate extraction, although the phosphate resources are nearing depletion. The island operates under a high-income Australian territorial economy, with government services playing a significant role in its development.

The investment climate on Christmas Island benefits from its status as an Australian territory, which ensures a stable legal and regulatory framework for potential investors. However, challenges such as geographic isolation and limited infrastructure may deter investment opportunities. Despite these hurdles, there are prospects for investment, particularly in tourism and government-supported initiatives like a proposed commercial spaceport.