West Bank Country Summary

FATF Status

The West Bank/Gaza Strip is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

A Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards has not yet been undertaken for the West Bank/Gaza Strip.

In the West Bank, corruption is primarily perceived in the forms of favoritism and nepotism, particularly within government institutions, which are viewed as the most vulnerable to corrupt practices. While the legal framework, including the Anti-Graft Law and the establishment of the Palestinian Anti-Corruption Commission, aims to combat corruption, public sentiment suggests that access to power remains a significant factor in business success, despite low instances of bribery reported among firms.

The economy of the West Bank, part of the Palestinian Territories, is characterized by a nominal GDP of just over $19 billion in 2022, but has faced significant challenges due to ongoing political instability and restrictions on movement and trade, particularly following the events of October 7, 2023. The region relies heavily on Israel for trade, with approximately 90% of exports directed there, leading to a substantial trade deficit of $6.2 billion in 2023. The economic landscape is dominated by small and medium-sized enterprises, which struggle with low productivity and investment levels, while the Palestinian Authority's fiscal instability and reliance on clearance revenues from Israel further complicate the investment climate, deterring foreign direct investment and limiting economic growth prospects.