When conducting business in Vanuatu, you may have heard about the Financial Action Task Force (FATF) Mutual Evaluation Review scheduled for later this year. The review will assess the effectiveness of Vanuatu’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) framework against internationally recognised standards.
Below are some quick facts about the FATF and how its recommendations have helped shape Vanuatu’s regulatory and business environment:
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The FATF was established in 1989 and has developed 40 internationally recognized recommendations to combat money laundering, terrorist financing, and proliferation financing.
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In 1997, Vanuatu became a founding member of the Asia/Pacific Group on Money Laundering (APG), which was established to promote the implementation of the FATF Recommendations across member jurisdictions.
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In 2018, Vanuatu was removed from the FATF “Grey List”, having successfully addressed the strategic deficiencies identified when it was listed in 2016.
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A 2026 Organisation for Economic Co-operation and Development (OECD) assessment indicated that Vanuatu is largely compliant with the FATF’s 40 Recommendations.
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In November 2026, the APG will conduct its onsite Mutual Evaluation, with a mock assessment scheduled for September 2026 to assist agencies in preparing for the review.
How could this affect business in Vanuatu?
Greater confidence from international financial institutions
A positive outcome from the Mutual Evaluation may further strengthen relationships with correspondent banks and other international financial institutions, supporting smoother cross-border banking and financial transactions.
Continued growth of Vanuatu as an international finance centre
A favourable review would reinforce Vanuatu’s commitment to maintaining a transparent, well-regulated and internationally recognised financial services sector, helping to enhance confidence among investors and businesses considering Vanuatu as a jurisdiction.
Enhanced regulatory framework
Vanuatu’s regulatory authorities, including the Vanuatu Financial Services Commission (VFSC) and the Vanuatu Financial Intelligence Unit (VFIU), continue to strengthen the jurisdiction’s AML/CTF framework in line with international best practice.
Looking ahead
The upcoming Mutual Evaluation represents an important milestone for Vanuatu.
Beyond meeting international standards, it provides an opportunity to demonstrate the significant progress the jurisdiction has made in strengthening its regulatory framework while continuing to foster a stable and business-friendly environment.
A positive outcome will help reinforce confidence in Vanuatu as a reputable place to invest, establish businesses and conduct international commerce.
