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 Solomon Islands has a lower middle-income economy heavily reliant on subsistence agriculture and fishing, with over 75% of the labor force engaged in these sectors. Despite modest GDP growth and a real GDP per capita of approximately $2,700 as of 2023, the country faces significant economic challenges, including high public debt, reliance on imports, and a current account deficit.

The investment climate in the Solomon Islands is shaped by its abundant natural resources, particularly in mining and agriculture; however, it is hindered by significant infrastructure challenges and ongoing political instability. While the government is actively seeking foreign investment, issues such as land ownership disputes and regulatory barriers often deter potential investors. Despite these obstacles, there is a government commitment to improving the investment environment to attract more foreign capital.