Nauru Country Summary

FATF Status

Nauru 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 Nauru was undertaken in 2024. According to that Evaluation, Nauru was deemed Compliant for 19 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Nauru exhibits a relatively low level of serious crime and corruption, with no significant issues related to human trafficking, arms trafficking, or drug trafficking. However, challenges persist in governance and transparency, as the government faces criticism for limiting media freedom and lacking robust laws on public information access, which may hinder resilience against corruption and criminal activities.

Nauru's economy has transitioned from its historical reliance on phosphate mining, which peaked in the 1970s, to a state heavily dependent on foreign aid and government employment due to resource depletion. The nation faces significant economic challenges, including high unemployment rates and a lack of diverse investment opportunities, which have been exacerbated by its past as a tax haven. Recent initiatives, such as partnerships in deep-sea mining and the introduction of a 'golden passport' program, aim to attract investment and stabilize the economy, although these efforts are hindered by a complicated legacy and ongoing structural challenges.