FATF Status

Fiji 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 Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Fiji was undertaken in 2023. According to that Evaluation, Fiji was deemed Compliant for 13 and Largely Compliant for 21 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness  & Technical Compliance ratings.

Corruption in Fiji is addressed through legal penalties, but cases often progress slowly due to personal relationships influencing decisions in the small population. The Fiji Independent Commission Against Corruption (FICAC) has significant investigative powers and has taken action against high-profile individuals, including the former Prime Minister and Police Commissioner, for various corruption-related offenses. Public awareness campaigns have encouraged citizens to report corruption, leading to ongoing investigations and legal proceedings against several officials.

Fiji, the second largest economy in the Pacific region, has fully recovered from the pandemic, primarily driven by a resurgence in tourism and increased remittances. However, economic growth is projected to slow to 3.4 percent in 2024 due to declining travel demand and capacity limits in tourism, alongside challenges such as a high debt-to-GDP ratio and labor skill shortages.

Fiji's investment climate is characterized by a welcoming stance towards foreign investment, supported by the Investment Act 2021, which streamlines the business registration process and enhances investor rights. However, challenges such as high debt-to-GDP ratios, skill shortages, and bureaucratic inefficiencies persist, making it difficult for businesses to establish and grow. The government is focused on attracting investments in key sectors like tourism, energy, and ICT, while also addressing constraints in the tourism industry and promoting structural reforms to improve the ease of doing business.