Marshall Islands Country Summary
Medium-Low Risk
View full Ratings TableSanctions
Lower Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Lower Concern
Criminal Markets (GI Index)
Lower Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Higher Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
The Republic of the Marshall Islands 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 Marshall Islands was undertaken in 2024. According to that Evaluation, the Marshall Islands was deemed Compliant for 14 and Largely Compliant for 21 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.
Sanctions
There are currently no international sanctions in force against Marshall Islands.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 64 |
The Marshall Islands faces significant challenges related to corruption and crime, with credible allegations of government fund misuse and abuse of public office. Human trafficking, particularly of women and girls, is a pressing issue, alongside concerns about illegal fishing and minor drug-related activities, while the country grapples with limited resources in law enforcement and judicial systems to effectively combat these issues.
Economy
The economy of the Marshall Islands is characterized by a dollarized system, political stability, and a commitment to enhancing the investment climate through the 2023 Amended Compact of Free Association with the U.S. The government actively encourages foreign direct investment (FDI), particularly in sectors such as marine services, sustainable tourism, renewable energy, and aquaculture, while also implementing reforms to streamline the investment process. However, challenges persist, including a small domestic market, high logistics costs, and complex land tenure systems that limit foreign ownership, which may deter potential investors.
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