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, with key sectors including tourism, agriculture, and fishing. Despite a small manufacturing sector contributing only about 5% to GDP, the economy faces challenges such as limited industrial development and dependence on foreign aid, which constrains growth.

Tonga's investment climate is shaped by its historical ties to the UK and a recent transition to a semi-constitutional monarchy, which has created opportunities for reform. However, the country ranks as the 165th safest investment destination globally, reflecting significant challenges in attracting foreign investment, including corruption and limited commercial activities. Despite these hurdles, there is potential for growth in sectors such as tourism and renewable energy, which the government is actively promoting.