Estonia Country Summary

FATF Status

Estonia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Estonia was undertaken in 2024. According to that Evaluation, Estonia was deemed Compliant for 7 and Largely Compliant for 19 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 3 of the 11 areas of Effectiveness of its AML/CFT Regime.

Estonia has established a robust legal framework to combat corruption, with effective enforcement mechanisms leading to the prosecution of high-ranking officials, although issues such as conflicts of interest and business-to-business corruption remain areas of concern. The country faces challenges related to organized crime, particularly in human trafficking and drug trade, but demonstrates resilience through a commitment to governance, an independent judicial system, and active civil society involvement in addressing these issues.

Estonia presents a robust and dynamic investment climate, characterized by liberal policies that align closely with those of the United States, making it an attractive destination for foreign direct investment (FDI). As a member of the European Union, Estonia has successfully attracted significant investments, totaling USD 40.5 billion by 2023, with key sectors including finance, real estate, and technology. However, the country faces challenges such as rising inflation and energy costs, which have impacted its industrial competitiveness and led to a projected decrease in GDP for 2023 and 2024, highlighting the need for continued adaptation in its economic strategies.