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 robust laws and regulations to combat corruption, which, while not absent, is not seen as a significant issue for foreign investors. The country ranks 12th on Transparency International's Corruption Perceptions Index and has effective measures in place, including the prohibition of facilitation payments and gifts in exchange for services. Recent government initiatives aim to educate the private sector about corruption risks, further reinforcing Estonia's reputation as one of the least corrupt nations in Central and Eastern Europe.

Estonia has a dynamic economy characterized by a transparent regulatory environment that fosters foreign direct investment (FDI) and trade. By 2023, the country attracted USD 40.5 billion in investments, with significant contributions from the financial sector, real estate, and science and technology. However, Estonia's economy faced challenges due to the energy crisis, leading to inflation rates of 19.4% in 2022 and a projected GDP decrease of 3.1% in 2023.

Estonia offers a dynamic and safe investment climate, characterized by liberal policies aimed at attracting foreign direct investment (FDI) and fostering export-oriented businesses. By 2023, Estonia had successfully attracted USD 40.5 billion in investments, with significant contributions from the financial sector, real estate, and science and technology. The government has implemented a transparent regulatory environment and an FDI screening mechanism to ensure equal treatment for foreign investors, while maintaining a flat tax rate of 22% that simplifies the tax regime.