The European Commission is poised to update its list of high-risk countries for money laundering, with Monaco money laundering concerns now firmly in its sights. This development follows the Principality’s recent “grey-listing” by the global financial watchdog, the FATF (Financial Action Task Force), in June 2024. This move aligns with the EU’s standard procedure of mirroring FATF decisions when adjusting its own blacklist of jurisdictions deemed deficient in combating money laundering and terrorist financing. Monaco’s formal inclusion on the EU’s equivalent list is now pending final approval from either the European Parliament or the EU Council.
Monaco’s acknowledgment and commitment
The Monegasque government has acknowledged this anticipated step, emphasizing it’s part of a routine process. They’ve reiterated their strong commitment to tightening financial oversight. Authorities in the Principality highlighted their ongoing, intensive efforts to implement the FATF-mandated Action Plan, which is steered by their National Coordination and Monitoring Committee and carried out in collaboration with EU institutions.
Striving for swift redemption
Despite the blow to its reputation, Monaco insists it’s on a fast track to redemption. Officials are actively working towards a swift removal from the grey list and point to significant progress already achieved. This progress will be rigorously scrutinized at the upcoming FATF-MONEYVAL joint plenary in Strasbourg, scheduled from Tuesday, June 10, to Friday, June 13.
Positive technical assessment
The Principality also noted a key technical victory: in December 2024, MONEYVAL positively rated 39 out of 40 FATF recommendations, recognizing Monaco’s substantial improvements in compliance.
