Solomon Islands

Sanctions

No

FATF AML Deficient List

No

Higher Risk

Not on EU White list equivalent jurisdictions
World Governance Indicators (Average Score)
Failed States Index (Political Issues)(Average Score)

Medium Risk

Compliance with FATF 40 + 9 Recommendations
Weakness in Government Legislation to combat Money Laundering
Corruption Index (Transparency International & W.G.I.)

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ANTI-MONEY LAUNDERING

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.

US Department of State Money Laundering assessment (INCSR)

The Solomon Islands was deemed a “Monitored” Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

 

Solomon Islands is not considered a major financial center. It has a relatively stable banking system closely integrated with the financial systems of Australia and New Zealand. In general, the risk of money laundering and terrorism financing in the Solomon Islands is very low given the country’s isolated geographic location and very small community, which preclude anonymity. Corruption and fraud by government employees continues to be the main source of illegal proceeds. Smuggling, environmental crimes, and the proliferation of counterfeit goods also are problems in the country. Historically, money laundering is often associated with fraud, illegal logging and fishing, and robbery. Foreign destinations for the laundered proceeds include China, Australia, Malaysia, and Singapore. The SIFIU suspects Asian logging vessels (particularly Malaysian) bring counterfeit currency into the Solomon Islands to finance forestry operations.  Customs fraud and tax evasion are also common.

SANCTIONS

There are no international sanctions currently in force against this country.

BRIBERY & CORRUPTION

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           44

World Governance Indicator – Control of Corruption             60

 

ECONOMY

The bulk of the population depends on agriculture, fishing, and forestry for at least part of its livelihood. Most manufactured goods and petroleum products must be imported. The islands are rich in undeveloped mineral resources such as lead, zinc, nickel, and gold. Prior to the arrival of The Regional Assistance Mission to the Solomon Islands (RAMSI), severe ethnic violence, the closure of key businesses, and an empty government treasury culminated in economic collapse. RAMSI's efforts to restore law and order and economic stability have led to modest growth as the economy rebuilds.

 

Agriculture - products:

cocoa, coconuts, palm kernels, rice, fruit; cattle, pigs; fish; timber

 

Industries:

fish (tuna), mining, timber

 

Exports - commodities:

timber, fish, copra, palm oil, cocoa

 

Exports - partners:

China 61.7%, India 5.9%, Italy 5.9% (2015)

 

Imports - partners:

Australia 24.7%, China 18.4%, Malaysia 6.3%, Singapore 5.8%, Fiji 4.7%, NZ 4.6%, Papua New Guinea 4.6% (2015)

 

Country Links
Solomon Islands Financial Intelligence Unit (SIFIU)​
Central Bank of Solomon Islands​
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

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