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 Mutual Evaluation Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Estonia was undertaken in 2022. According to that Evaluation, Estonia was deemed Compliant for 7 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed 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 seen as a significant issue for foreign investors. The country ranks 12th on Transparency International's Corruption Perceptions Index and has effective anti-corruption measures in place, including the prosecution of high-ranking officials. Recent government initiatives aim to educate the private sector on business-to-business corruption risks, further enhancing Estonia's reputation as one of the least corrupt countries in Central and Eastern Europe.

Estonia has a dynamic economy characterized by a liberal investment climate and strong foreign direct investment (FDI), with a total of USD 40.5 billion attracted by 2023. However, the country has faced challenges due to an energy crisis, leading to significant inflation and a decrease in GDP by 3.1% in 2023. Despite these challenges, Estonia continues to focus on decarbonizing its economy and enhancing its business environment.

Estonia offers a dynamic and safe investment climate, characterized by liberal policies aimed at attracting foreign direct investment (FDI) and fostering export-oriented companies. The country has successfully attracted USD 40.5 billion in investments by 2023, with significant contributions from the financial sector, real estate, and science and technology. Additionally, Estonia's transparent regulatory environment and a flat tax system enhance its appeal to foreign investors.