Cocos (Keeling) Islands Country Summary

The Cocos (Keeling) Islands is a territory of Australia. As such, we are including the information for Australia below:

FATF Status

Australia 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 Australia was undertaken in 2024. According to that Evaluation, Australia was deemed Compliant for 18 and Largely Compliant for 12 of the FATF 40 Recommendations. It remains Highly Effective for 1 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The Cocos (Keeling) Islands, as a territory of Australia, benefit from a comprehensive legal framework aimed at combating corruption and organized crime. While Australia faces challenges such as human trafficking, drug-related issues, and cybercrime, it maintains a strong governance structure and robust law enforcement to address these threats, ensuring a relatively resilient environment against crime and corruption.

The economy of the Cocos (Keeling) Islands is primarily driven by copra production and tourism, with a burgeoning focus on water-based activities. The local market is small and heavily reliant on imports from Australia for food and necessities, which presents challenges for potential investors despite the islands' stable governance as an Australian external territory. Recent infrastructure improvements, particularly to the airstrip, coupled with the Australian government's commitment to enhancing local services, indicate a growing interest in the islands' strategic potential and may improve the overall investment climate.