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, with a transparent government procurement system and active participation in international anti-corruption efforts. The Criminal Code Act 1995 criminalizes bribery of foreign public officials, imposing severe penalties for violations, including imprisonment and substantial fines for both individuals and corporations. While corruption is generally not seen as a barrier to business in Australia, there are risks associated with foreign bribery, particularly in the mining sector.

The economy of the Cocos (Keeling) Islands is mainly driven by copra production and tourism, with a growing focus on water-based activities. Most necessities are imported due to limited local agricultural output, and while the unemployment rate was 6.7% in 2011, the job market remains relatively stable.

The investment climate in the Cocos (Keeling) Islands benefits from its status as an Australian external territory, which offers stability and governance. However, challenges arise due to the small population and limited local market, potentially hindering large-scale investments. Recent infrastructure developments, such as airport upgrades for military aircraft, and the islands' strategic location may attract foreign investors interested in the Indian Ocean region.