Réunion Country Summary

Réunion is an overseas department and region of France. As such, we are including the information for France below:

FATF Status

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

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in France was undertaken in 2022. According to that Evaluation, France was deemed Compliant for 19 and Largely Compliant for 18 of the FATF 40 Recommendations. It was rated Highly Effective for 3 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.

Réunion, as an overseas department of France, is subject to the same legal and institutional frameworks aimed at combating crime and corruption. Recent legislative measures, such as the "Loi Sapin II," have been implemented to enhance transparency and accountability among public officials, although concerns remain regarding the effectiveness of enforcement and the independence of judicial processes in addressing corruption cases.

Réunion's economy is heavily dependent on tourism, which has overtaken traditional sectors like sugarcane production as the main source of income, contributing to a GDP of 19.5 billion euros in 2019 and a GDP per capita of 22,629 euros. While agriculture remains important, employing 10% of the workforce and generating 5% of the gross regional product, the island has faced challenges such as high unemployment, which has improved to 19.0% in 2023, the lowest in 45 years. The investment climate benefits from Réunion's status as an overseas department of France, offering political stability and access to EU markets, but also presents challenges due to its reliance on tourism and ongoing efforts to diversify the economy through investments in renewable energy and infrastructure.