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 heavily relies on remittances from its diaspora, accounting for approximately 45% of GDP. Key sectors include tourism, agriculture, and fisheries, but the economy faces challenges such as limited industrial development and vulnerability to external shocks, despite efforts to enhance agricultural productivity and attract foreign investment.

Tonga's investment climate is considered challenging, ranked 165th globally for investment safety as of 2011. While the government has initiated reforms to attract foreign investment, particularly in the renewable energy sector, issues such as corruption and limited access to finance continue to hinder progress. Additionally, the economy's reliance on remittances and the dominance of the royal family complicate the landscape for potential investors.