FATF status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Solomon Islands was undertaken in 2019. According to that Evaluation, The Solomon Islands was deemed Compliant for 5 and Largely Compliant for 8 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The economy of Solomon Islands is classified as a lower middle-income economy, heavily dependent on natural resources such as agriculture, fishing, and forestry, with over 75% of the labor force engaged in subsistence activities. The GDP per capita is around $600, indicating significant economic challenges, including public debt and reliance on foreign aid, while key industries include fish, mining, and timber.

The investment climate in Solomon Islands is shaped by its rich natural resources, yet it is hindered by political instability and poor infrastructure. Recent initiatives aim to improve the business environment and attract foreign investment, particularly from China, raising concerns about dependency. The government is also focused on enhancing transparency and governance to create a more favorable atmosphere for investors.