Saint Martin (French part) Country Summary

Saint Martin (French part) is a territorial collectivity of France. Information for France may be included 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.

Saint Martin, as a territorial collectivity of France, is subject to French laws aimed at combating corruption, including the "Restoring Confidence in Public Life" law and the "Loi Sapin II," which established an anti-corruption agency and mandated transparency in public life. Despite these measures, concerns remain regarding the effectiveness of enforcement, particularly in prosecuting foreign bribery cases, as highlighted by the OECD's findings that many recommendations for improvement have not been fully implemented. Additionally, while France has made some progress in addressing corruption, the lack of significant convictions and the challenges in prosecuting foreign bribery indicate ongoing issues within the system.

Saint Martin (French part) has a high-income economy primarily driven by tourism, which employs around 85% of the population. The economy has been significantly affected by challenges such as the COVID-19 pandemic and the devastation caused by Hurricane Irma in 2017, leading to a nominal GDP of approximately $649.206 million in 2021, highlighting its vulnerabilities.

The investment climate in Saint Martin (French part) benefits from its status as an overseas collectivity of France, which ensures a stable legal framework and access to the European Union market. However, concerns about infrastructure and recovery following Hurricane Irma have affected investor confidence. Despite these challenges, ongoing government efforts to rebuild infrastructure and the presence of a growing tourism sector present potential opportunities for future investments.