Maldives Country Summary

FATF Status

The Maldives 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 The Maldives was undertaken in 2025. According to that Evaluation, the Maldives was deemed Compliant for 1 and Largely Compliant for 14 of the FATF 40 Recommendations. It was rated Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The Maldives faces significant challenges related to corruption and crime, with corrupt practices permeating various levels of society, undermining economic growth and governance. Despite efforts to enhance transparency and combat corruption, including the establishment of the Anti-Corruption Commission and regulatory measures under the current administration, enforcement remains weak, and the judicial system struggles with public trust and access to justice.

In terms of criminal activities, the Maldives is a hub for human trafficking and smuggling, particularly affecting foreign workers in the tourism and construction sectors. Organized crime, including drug trafficking and environmental crimes, is prevalent, often linked to politically connected groups, while the country grapples with systemic corruption and a weak financial regulatory environment that exacerbates vulnerabilities to illicit activities.

The economy of the Maldives is predominantly driven by tourism, which accounts for nearly 30% of the GDP and over 60% of foreign currency earnings, although the sector faced significant challenges during the COVID-19 pandemic. Recovery has been underway since late 2020, with tourist arrivals reaching 2.04 million in 2024, and the government is investing heavily in expanding tourism capacity while also aiming to diversify the economy, particularly by increasing the digital services sector's contribution to GDP. Despite a projected GDP growth of 5.1% in 2024 and the highest per capita GDP in South Asia, issues such as income inequality, high public debt, and limited employment opportunities for locals, especially in remote areas, remain pressing concerns.