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 Darussalam has established a robust legal framework to combat corruption, primarily through the Prevention of Corruption Act and the Anti-Corruption Bureau, which has led to a generally low level of reported corruption. However, challenges remain, such as recent high-profile corruption cases involving former judges and the need for greater transparency regarding the royal family's finances.

In terms of crime resilience, Brunei faces issues like human trafficking and drug-related crimes, particularly with synthetic drugs and cannabis, while the presence of organized crime is minimal and largely foreign. The political environment is restrictive, which hampers efforts to combat transnational organized crime effectively, and economic vulnerabilities, particularly among foreign workers, exacerbate the risk of exploitation and trafficking.

Brunei Darussalam, a small yet energy-rich sultanate, maintains a stable economy primarily driven by oil and gas, which constitutes about 50% of its GDP. The government is actively pursuing economic diversification and foreign investment through streamlined business regulations and incentives, fostering a conducive environment for entrepreneurs and foreign investors. Despite recent challenges such as rising inflation and shipping costs due to geopolitical tensions, Brunei's favorable tax regime, lack of income taxes, and commitment to ambitious climate goals position it as an attractive destination for investment across various sectors, including energy, construction, and technology.