Brunei Darussalam Country Summary

FATF Status

Brunei 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 Brunei Darussalam was undertaken in 2023. According to that Evaluation, Brunei Darussalam was deemed Compliant for 7 and Largely Compliant for 29 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 5 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Brunei Darussalam has established a robust legal framework to combat corruption, highlighted by the enforcement of the Prevention of Corruption Act and the presence of the Anti-Corruption Bureau, which has contributed to a generally low level of reported corruption. However, the country faces challenges related to human trafficking, illicit trade, and drug-related crimes, exacerbated by economic vulnerabilities and a restricted political environment that limits the effectiveness of civil society in addressing these issues.

Brunei Darussalam, a small but energy-rich sultanate, has an economy heavily reliant on hydrocarbons, with the oil and gas sector constituting about 90% of its exports and 95% of its GDP. Despite ongoing diversification efforts, the government actively promotes foreign direct investment (FDI) through various incentives and streamlined business establishment processes, aiming to create a transparent investment environment. The country benefits from a stable political climate, a well-educated workforce, and no income or sales taxes, making it an attractive destination for international investors, particularly in sectors like aerospace, agribusiness, and digital finance.