Réunion Country Summary
Sanctions
Low Concern
FATF AML Deficient List
Low Concern
Terrorism
Low Concern
Corruption
Low Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
Réunion is an overseas department and region of France. Information for France may be included below:
FATF Status
France 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 Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in France was undertaken in 2022. According to that Evaluation, France was deemed Compliant for 19 and Largely Compliant for 18 of the FATF 40 Recommendations. It was rated Highly Effective for 3 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are no international sanctions currently in force against this country
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 67 |
| World Bank: Control of Corruption Percentile Rank | 84 |
Réunion, as an overseas department of France, is subject to French laws aimed at combating corruption, including the 2017 "Loi Sapin II," which established an anti-corruption agency and mandated transparency in public life. Despite these measures, concerns remain regarding the enforcement of anti-corruption laws, particularly in relation to foreign bribery, where the prosecution of offenders has been limited and legislative reforms have not been fully implemented. The OECD has noted that while France has made some progress, significant gaps in enforcement and legal clarity persist, hindering effective action against corruption.
Economy
Réunion's economy is heavily reliant on tourism, which has become its main income source, outpacing traditional sectors like sugarcane production. The island's GDP was estimated at 19.5 billion euros in 2019, with a GDP per capita of 22,629 euros, although it faces challenges such as high unemployment, which improved to 19.0% in 2023, the lowest in 45 years.
The investment climate in Réunion benefits from its status as an overseas department of France, ensuring a stable political environment and access to European Union markets. However, challenges such as high unemployment and a heavy reliance on tourism present a mixed outlook for potential investors. The local government is actively promoting investments in renewable energy and infrastructure to diversify the economy and improve growth prospects.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings