Tokelau is a dependent territory of New Zealand. Information for New Zealand may be included below:

FATF status

New Zealand is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in New Zealand was undertaken in 2021. According to that Evaluation, New Zealand was deemed Compliant for 8 and Largely Compliant for 20 of the FATF 40 Recommendations. It was deemed Highly effective for 2 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Tokelau, as a dependent territory of New Zealand, benefits from New Zealand's strong anti-corruption measures, which consistently rank it among the least corrupt countries globally. The government enforces strict penalties for bribery, supports transparency initiatives, and engages in international anti-corruption agreements. With a favorable regulatory environment for businesses, the risk of corruption remains minimal, and laws prohibit both active and passive bribery in all sectors.

Tokelau has the smallest economy of any nation, with an annual purchasing power of about US$1,000 per capita and a heavy reliance on subsidies from New Zealand. Economic activities are limited to small-scale enterprises focused on copra production, fishing, and handicrafts, while the government faces a significant deficit covered by New Zealand aid.

The investment climate in Tokelau is significantly limited due to its small size, scarce resources, and heavy dependence on external funding from New Zealand. Efforts to enhance self-governance and economic independence have encountered obstacles, highlighted by two unsuccessful referendums for self-determination.