Tuvalu Country Summary

FATF Status

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

Compliance with FATF Recommendations

Tuvalu has not yet undertaken a Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards.

Tuvalu has a low incidence of serious crimes such as human trafficking, arms trafficking, and drug trade, largely due to its strong community support and free education system. While there is a rise in counterfeit goods and illegal fishing, organized crime remains minimal, with no evidence of mafia-style groups. The government focuses on economic issues and climate change, participating in regional law enforcement initiatives, but lacks specific action plans for organized crime prevention.

Tuvalu's economy is classified as an upper middle-income Pacific island economy, heavily dependent on fishing, international aid, and remittances from citizens abroad. The country has a small GDP, with key contributions from fishing licenses, the Tuvalu Trust Fund, and the leasing of its '.tv' internet domain, while facing challenges such as high inflation and vulnerability to external economic shocks.

The investment climate in Tuvalu is shaped by its limited resources and geographical isolation, which can hinder foreign investment. However, the government is actively pursuing international partnerships and climate adaptation projects, such as the Tuvalu Coastal Adaptation Project, to enhance economic resilience and attract investment. Support from international organizations like the Asian Development Bank further bolsters Tuvalu's investment potential.