Faroe islands Country Summary
Sanctions
Low Concern
FATF AML Deficient List
Low Concern
Terrorism
Low Concern
Corruption
Low Concern
US State ML Assessment
Low Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
The Faroe Islands is an autonomous territory within the Kingdom of Denmark. Information for Denmark may be included below:
FATF Status
Denmark is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The latest follow up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Denmark was undertaken in February 2021. According to that Evaluation, Denmark was deemed Compliant for 6 and Largely Compliant for 32 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are no international sanctions currently in force against this country
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 90 |
| World Bank: Control of Corruption Percentile Rank | 100 |
Denmark is recognized as one of the least corrupt countries globally, as highlighted by the 2023 Corruption Perceptions Index. While the Danish government effectively enforces anti-corruption laws, the OECD has raised concerns about insufficient prioritization of foreign bribery prevention and enforcement, noting that only one company has been convicted of foreign bribery since 2000. The OECD Working Group has recommended that Denmark develop a comprehensive strategy to combat foreign bribery and enhance its legal framework to address these issues.
Economy
The economy of the Faroe Islands is a high-income one, primarily driven by the fishing and fish processing industries, which are crucial for its economic stability. In 2022, the islands recorded a GDP of approximately $3.556 billion, with a real GDP per capita of $71,500, reflecting a significant recovery from past economic challenges.
The investment climate in the Faroe Islands is focused on attracting new business projects, especially in the information technology and tourism sectors, as the government aims to diversify the economy beyond its heavy reliance on fishing. The islands offer a favorable environment for foreign investment, bolstered by a high level of autonomy in trade agreements and economic policies, along with their strategic location and access to rich fishing waters.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
