Tonga Country Summary

FATF Status

Tonga 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 Tonga was undertaken in 2021. According to that Evaluation, Tonga was deemed Compliant for 1 and Largely Compliant for 7 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Tonga faces challenges related to crime and corruption, with a notable level of resilience against these issues. The country's governance and societal structures contribute to its ability to manage and mitigate criminal activities, although concerns regarding corruption remain present.

Tonga's economy is primarily driven by a large nonmonetary sector, heavily reliant on remittances from its diaspora, alongside significant contributions from tourism and agriculture. The government is actively working to enhance the private sector and agricultural productivity, recognizing the critical roles of remittances and tourism in fostering economic growth. Despite historical challenges in attracting foreign investment, including issues like corruption and inadequate infrastructure, the government is implementing reforms and targeting sectors such as renewable energy and tourism to improve the investment climate.