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 robust laws and regulations to combat corruption, which is generally 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 criminal penalties for bribery and a proactive approach to educating businesses about corruption risks. With strong anti-corruption practices in public institutions and international cooperation, Estonia is recognized as one of the least corrupt countries in Central and Eastern Europe.

Estonia has a dynamic economy characterized by a strong openness to foreign direct investment (FDI), with a total of USD 40.5 billion in investments 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 percent in 2023. The government maintains a liberal business climate, supported by a transparent regulatory environment and a flat tax system, which encourages investment across various sectors.

Estonia offers a dynamic and secure investment climate, characterized by liberal policies aimed at attracting foreign direct investment (FDI) and fostering export-oriented companies. As of 2023, Estonia has successfully attracted USD 40.5 billion in investments, with significant contributions from the financial sector, real estate, and science and technology. The country maintains a transparent regulatory environment that protects the freedom to conduct business, while also implementing an investment screening mechanism for non-EU investors in sensitive sectors.