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 5 and Largely Compliant for 23 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 has enforced the Prevention of Corruption Act since 1984, which empowers the Anti-Corruption Bureau (ACB) to investigate corruption allegations and related offenses. Despite a low level of reported corruption, highlighted by a 2019 ranking of 35th in Transparency International's index, the government has faced issues, such as the conviction of two former judges for embezzlement in 2020. The sultan has publicly condemned corruption, and Brunei is a signatory to the UN Anticorruption Convention, although no external organizations monitor corruption within the country.

Brunei Darussalam has a small but energy-rich economy, heavily reliant on oil and gas, which accounts for about 50% of its GDP. The government actively seeks to diversify the economy and attract foreign investment by streamlining business processes and offering various incentives, while citizens enjoy a high quality of life with no taxes and access to free education and healthcare.

Brunei Darussalam has an open economy that is favorable to foreign direct investment (FDI), with the government actively promoting economic diversification to reduce its reliance on oil and gas exports. The Brunei Economic Development Board facilitates foreign investment by offering various incentives and streamlining the business establishment process, including exemptions from business licenses for certain activities. Additionally, there are no restrictions on foreign ownership of companies, although at least one director of a locally incorporated company must be a resident of Brunei.