Estonia Country Summary

FATF Status

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

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Estonia was undertaken in 2024. According to that Evaluation, Estonia was deemed Compliant for 7 and Largely Compliant for 19 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 3 of the 11 areas of Effectiveness of its AML/CFT Regime.

Estonia has established laws and regulations to combat corruption, which, while present, is not a significant concern for foreign investors, as evidenced by its 12th place ranking on Transparency International's Corruption Perceptions Index in 2023. The government actively coordinates anti-corruption efforts across various sectors and has initiated educational programs for the private sector to mitigate business-to-business corruption. Additionally, Estonia faces challenges related to human trafficking, organized crime, and cyber threats, but demonstrates resilience through its commitment to tackling these issues and maintaining a robust judicial system.

Estonia has a dynamic economy characterized by a liberal investment climate and strong foreign direct investment (FDI) per capita, attracting a total of USD 40.5 billion by 2023. However, the country has faced challenges due to an energy crisis, leading to significant inflation and a projected GDP decrease of 3.1% in 2023. The Estonian government is focused on decarbonizing the economy and enhancing competitiveness while maintaining a transparent regulatory environment.

Estonia presents a favorable investment climate characterized by a transparent regulatory environment and liberal policies aimed at attracting foreign direct investment (FDI). By 2023, the country had successfully attracted USD 40.5 billion in investments, with significant contributions from the financial sector, real estate, and science and technology. The Estonian government treats foreign investors equally to local ones, and recent legislative measures have been implemented to screen investments from non-EU entities in sensitive sectors.