FATF status

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

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Montserrat was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Montserrat was deemed Compliant for 3 and Largely Compliant for 25 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 2 of the 6 Core Recommendations.

In 2016, it was recognised that Montserrat had made significant progress in addressing deficiencies identified in its original Mutual Evaluation report and, therefore, it was decided that the country should be removed from the regular follow-up process.

Montserrat's economy has been significantly impacted by the 1995 volcanic eruptions, leading to a reliance on British government support for its operating budget, alongside local taxes and customs duties. With a small population and a focus on tourism, rum, and agriculture, the economy is limited, although recent initiatives aim to enhance energy sustainability through geothermal and solar projects.

Montserrat's investment climate benefits from its status as a British Overseas Territory, which provides political stability and a favorable legal framework for investors. However, challenges such as ongoing volcanic activity and a small market size may deter potential investments. The Little Bay Port Development Project, supported by the UK and the Caribbean Development Bank, aims to enhance infrastructure and economic recovery, indicating a commitment to improving the investment landscape.