Kiribati Country Summary

FATF Status

Kiribati is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

Kiribati has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing.

Kiribati faces significant challenges with human trafficking, particularly involving forced labor and sexual exploitation, primarily affecting men and children. Organized crime is relatively low, with small networks involved in human trafficking and illegal fishing, while drug trafficking is minimal, mainly serving as a transit point. Although the government is politically stable, it struggles with corruption and lacks resources to combat financial crimes and organized threats effectively, relying on international assistance for support.

Kiribati's economy is primarily based on fishing and copra exports, with the nation being one of the least developed globally and heavily dependent on international aid and remittances. The GDP is among the lowest in Oceania, and the country imports nearly all essential goods due to limited domestic production, although there are signs of growth in tourism and retail sectors.

The investment climate in Kiribati is shaped by its dependence on foreign aid and the urgent need for infrastructure development, which offers potential opportunities for investors. However, challenges such as political instability and vulnerability to climate change pose significant risks that may deter investment. Despite government efforts to improve the investment environment, ongoing resource limitations and environmental concerns remain critical barriers.