Faroe islands Country Summary
Sanctions
No
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
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 Danish territorial economy primarily dependent on fishing and fish processing, which are crucial sectors. Despite past economic challenges in the early 1990s, the islands have recovered significantly, boasting a GDP of approximately $3.556 billion and a real GDP per capita of $71,500 in 2022, although the economy remains vulnerable due to its reliance on fishing.
The investment climate in the Faroe Islands benefits from a stable political environment and a high degree of autonomy from Denmark, which facilitates independent trade agreements. The government actively seeks to attract new investments, particularly in the information technology sector and various business projects, to diversify the economy beyond its reliance on fishing.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
