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 misuse of funds and abuse of public office. Human trafficking, particularly of women and girls, is a pressing issue, compounded by limited resources for law enforcement and a lack of effective anti-trafficking measures, while corruption remains a major deterrent for international investment.
Despite these challenges, the country maintains a stable democratic governance system and actively participates in international cooperation efforts to combat transnational crime. Civil society organizations play an essential role in supporting victims of crime, although improvements are needed in victim identification and long-term support, particularly for those affected by trafficking.
Economy
The economy of the Republic of the Marshall Islands (RMI) is characterized by its small size, with a GDP of approximately USD 259 million and a per capita GDP of USD 6,172, reflecting a modest growth rate of 1.1 percent. The economy is heavily reliant on external aid, particularly from the United States, which has provided over USD 1 billion in assistance since 2004, constituting about 70 percent of the country's GDP during that period. The primary sectors include a small subsistence agriculture base, commercial fisheries, and a service-oriented urban economy, but the RMI faces significant challenges such as limited infrastructure, vulnerability to external economic shocks, and stringent land ownership laws that complicate foreign investment.
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