The Cocos (Keeling) Islands 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 processes and active participation in international anti-corruption efforts. The Criminal Code Act 1995 criminalizes bribery of foreign public officials, imposing severe penalties for both individuals and corporations. Despite some corruption risks, particularly in foreign bribery and the mining sector, Australia is perceived as having low corruption levels, with various agencies dedicated to ensuring integrity and transparency in public services.

The economy of the Cocos (Keeling) Islands is primarily driven by copra products and a developing tourism sector focused on water-based activities. The islands rely heavily on imports from Australia for food and necessities, while their exports are mainly directed towards the US, UK, and France, reflecting a limited local economy and challenges in job creation, as indicated by an unemployment rate of 6.7% in 2011.

The investment climate in the Cocos (Keeling) Islands benefits from its status as an Australian external territory, which offers a stable legal framework for investors. However, the limited local economy and heavy reliance on imports may present challenges for those seeking growth opportunities. Infrastructure developments, such as the planned airstrip extension for military aircraft, suggest potential for increased investment, particularly from defense sectors.