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 for food and necessities, with Australia being the main source of imports, while exports are mainly directed towards the US, UK, and France.

The investment climate in the Cocos (Keeling) Islands benefits from its status as an Australian external territory, providing stability and a regulatory framework for investors. However, challenges such as a limited local market and heavy reliance on imports may deter potential investors. Future infrastructure developments, particularly the planned upgrade of the airstrip, are expected to enhance connectivity and attract more visitors, potentially improving investment opportunities in tourism and maritime activities.