FATF status

Tonga 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 Tonga was undertaken in 2021. According to that Evaluation, Tonga was deemed Compliant for 1 and Largely Compliant for 7 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Tonga's economy is heavily reliant on remittances from its diaspora, particularly from Australia, New Zealand, and the United States, alongside key industries such as agriculture, tourism, and fishing. The government is focused on enhancing the private sector and agricultural productivity, while also recognizing tourism as a potential growth driver despite its current underdevelopment.

Tonga's investment climate has faced historical challenges, particularly due to corruption and a lack of transparency, which have impacted investor confidence. However, recent government reforms aimed at improving the business environment and increasing private sector participation are making Tonga a more attractive destination for investment, especially in sectors like renewable energy and tourism. As the country continues to enhance its infrastructure and regulatory frameworks, it seeks to position itself favorably in the Pacific market.