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 struggled significantly since the volcanic eruptions that began in 1995, which devastated much of its infrastructure. The economy is primarily reliant on tourism, rum, textiles, and electronic appliances, with minimal exports and imports that greatly exceed exports. Currently, the island's operating budget is heavily supported by the British government, alongside local taxes and customs duties.

The investment climate in Montserrat benefits from its status as a British Overseas Territory, which offers political stability and legal protections for investors. However, challenges such as ongoing volcanic activity and limited infrastructure development hinder the attraction of significant foreign investment. Recent initiatives like the Little Bay Port Development Project and exploration of renewable energy projects aim to improve infrastructure and promote sustainable development, potentially enhancing the investment landscape.