Tokelau Country Summary

Tokelau is a dependent territory of New Zealand. As such, we are including the information for New Zealand below:

FATF Status

New Zealand is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in New Zealand was undertaken in 2021. According to that Evaluation, New Zealand was deemed Compliant for 8 and Largely Compliant for 20 of the FATF 40 Recommendations. It was deemed Highly effective for 2 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Tokelau, as a dependent territory of New Zealand, benefits from New Zealand's strong governance and low levels of corruption, which contribute to a generally secure environment. While challenges such as human trafficking and drug-related issues persist, the territory's resilience is bolstered by effective law enforcement and a commitment to international cooperation against organized crime.

Tokelau's economy is one of the smallest in the world, primarily reliant on subsistence agriculture and fishing, with key crops including coconuts, taro, and bananas. Economic activities are limited, generating revenue mainly from copra sales, postage stamps, and remittances from Tokelauans abroad, particularly in New Zealand, while recent efforts to diversify include domain name registrations under the .tk extension. The investment climate is shaped by its status as a New Zealand dependency, which provides financial support, yet challenges remain in attracting foreign investment due to limited economic opportunities and a small population; however, Tokelau's commitment to renewable energy and sustainability may open future avenues for investment in green technologies.