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

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Maldives was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, The Maldives was deemed Compliant for 1 and Largely Compliant for 0 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

The Maldives faces significant challenges related to crime and corruption, with ongoing issues at various societal levels that hinder economic growth and governance. While the government has made some efforts to combat corruption and organized crime, including the establishment of the Anti-Corruption Commission and international collaborations, institutional weaknesses and a lack of public trust in law enforcement persist, complicating effective enforcement and accountability.

The economy of the Maldives is primarily driven by tourism, which contributes approximately 30% to the GDP and generates over 60% of foreign currency earnings. Following a significant decline due to the COVID-19 pandemic, the tourism sector has shown a robust recovery, with 1.88 million tourist arrivals recorded in 2023, and the economy is projected to grow by 6.5% in the same year, the highest rate in South Asia. Despite this positive outlook, challenges such as income inequality, limited employment opportunities, and a high debt-to-GDP ratio remain significant concerns, particularly for those living in remote atolls, while the government continues to pursue economic diversification and infrastructure development to bolster resilience against macroeconomic fluctuations.