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 prohibits bribery of foreign officials, imposing severe penalties for violations, including imprisonment and substantial fines for both individuals and corporations. Despite the low levels of corruption perceived internationally, risks remain, particularly in foreign bribery and the mining sector, with various independent commissions established at both national and state levels to ensure accountability and integrity.

Christmas Island has a high-income economy primarily driven by government services and phosphate mining, although the phosphate resources are nearing depletion. The island's exports mainly consist of phosphates and fertilizers, with significant trade partners including New Zealand, Indonesia, and Singapore, while imports are predominantly from Australia.

The investment climate on Christmas Island benefits from its status as an Australian territory, which offers a stable legal framework. However, challenges arise from the economy's heavy reliance on a depleting phosphate industry and insufficient infrastructure, which may deter potential investors. Government efforts to diversify the economy, such as proposals for a commercial spaceport, have yet to materialize, and environmental concerns surrounding the phosphate mining sector have further impacted investor confidence.