Solomon Islands Country Summary

FATF Status

The Solomon 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 Solomon Islands was undertaken in 2019. According to that Evaluation, The Solomon Islands was deemed Compliant for 5 and Largely Compliant for 8 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The Solomon Islands grapples with significant challenges related to crime and corruption, particularly in human trafficking, illegal logging, and drug trafficking, often exacerbated by weak governance and under-resourced law enforcement. Despite the presence of civil society organizations and community-level crime prevention initiatives, the effectiveness of these efforts is hindered by corruption, limited government influence outside urban areas, and a lack of transparency in dealings with foreign entities.

The Solomon Islands operates as a lower middle-income economy heavily reliant on natural resources, with a significant portion of its labor force engaged in subsistence agriculture and fishing. The country faces economic challenges, including a high public debt of 15.39% of GDP and a substantial trade deficit, as imports significantly outpace exports, which primarily consist of wood, fish, and gold. While the investment climate is shaped by the nation's rich natural resources, it is impeded by political instability and infrastructure issues; however, the government is actively seeking to attract investment in tourism and renewable energy sectors, despite ongoing land ownership disputes and local resistance to foreign investment.