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 remains a significant issue in Fiji, despite the legal framework that imposes criminal penalties for such activities. The Fiji Independent Commission Against Corruption (FICAC) has been active in investigating high-profile cases, including the recent sentencing of former Prime Minister Voreqe Bainimarama and suspended Police Commissioner Sitiveni Qiliho. Additionally, former Attorney General Aiyaz Sayed-Khaiyum faced arrest for alleged abuse of authority, highlighting ongoing concerns about corruption in government.

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 constraints in tourism, alongside challenges such as a high debt-to-GDP ratio and labor skill shortages. The government is focused on attracting foreign investment and improving the ease of doing business to sustain growth.

Fiji's investment climate is characterized by a welcoming stance towards foreign investment, supported by the Investment Act 2021, which streamlines business registration and enhances investor rights. However, challenges such as high debt-to-GDP ratios, labor skill shortages, and bureaucratic red tape hinder business establishment and large investments. The government aims to boost investment in key sectors like tourism, energy, and ICT while addressing constraints in the tourism industry and promoting structural reforms to improve the ease of doing business.