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 volcanic eruptions since 1995, leading to a heavy reliance on approximately £25 million in annual support from the British government, alongside local taxes and customs duties. The economic activities are primarily centered around tourism, agriculture, and limited manufacturing, with ongoing efforts to develop renewable energy resources. Recent initiatives, such as the Little Bay Port Development Project, aim to revitalize the economy and improve infrastructure.

The investment climate in Montserrat benefits from its status as a British Overseas Territory, which offers political stability and legal protections for investors. However, ongoing volcanic activity and a limited market size pose challenges that may deter potential investors, despite the presence of incentives for tourism and renewable energy projects. Recent initiatives, such as the Little Bay Port Development Project, demonstrate a commitment to revitalizing the economy and improving infrastructure.