Greenland Country Summary

Greenland 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.

Greenland, as an autonomous territory of Denmark, is included in Denmark's investment climate statement regarding corruption. Denmark is recognized as the least corrupt country globally, but the OECD has raised concerns about its insufficient prioritization of preventing and penalizing foreign bribery, despite achieving its first foreign bribery conviction in 2019. The OECD's Phase 4 monitoring report recommends that Denmark enhance its legal framework and develop a comprehensive strategy to combat foreign bribery, while also acknowledging the positive steps taken by the government and businesses in addressing corruption.

Greenland's economy is significantly dependent on financial aid from Denmark, which accounts for nearly half of its public revenue. The fishing industry, particularly shrimp and fish processing, dominates the economy, contributing over 90% of exports, while potential mineral wealth is being explored despite challenges posed by environmental concerns and extreme weather.

Greenland's investment climate is significantly shaped by its reliance on Danish financial aid and the challenges associated with resource extraction, particularly in mining. While there is interest in developing the mining sector, the government has enacted a ban on new oil and gas exploration due to environmental concerns. The focus on sustainable development in areas like hydropower and tourism indicates potential for future investment, albeit under strict regulations to protect the environment.