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 and actively participates in international agreements to enhance transparency. With a favorable regulatory environment for businesses, the risk of corruption is minimal, and laws prohibit both active and passive bribery in all sectors.

Tokelau has the smallest economy in the world, relying heavily on subsidies from New Zealand to cover its budget deficits, with annual revenues under $500,000 and expenditures exceeding $2.8 million. The local economy is primarily based on small-scale industries such as copra production, fishing, and handicrafts, while the territory also leads in renewable energy by achieving 100% solar power for its electricity needs.

The investment climate in Tokelau is limited due to its small size and scarce resources, which makes attracting significant foreign investment challenging. However, the territory's strong commitment to renewable energy and its unique .tk domain name registration system have garnered some interest in the digital economy.