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 lower middle-income and relies heavily on natural resources, with over 75% of the labor force engaged in subsistence agriculture and fishing. Key industries include fish, mining, and timber, but the country faces challenges such as high import dependency and limited agricultural land utilization, alongside financial instability and inadequate infrastructure that hinder growth in fisheries and tourism.

The investment climate in the Solomon Islands requires substantial enhancements in infrastructure and regulatory frameworks to attract foreign investment. Despite government efforts to stimulate economic growth, challenges such as land ownership disputes and political instability persist, discouraging potential investors. However, there are promising opportunities in sectors like renewable energy and tourism, supported by international aid and partnerships.