Monaco's Anti-Money Laundering Efforts Receive Renewed FATF Recognition

Monaco Gains International Backing for AML/CFT Reforms

Monaco has received renewed international recognition from the Financial Action Task Force (FATF) for its strengthened efforts in combating money laundering (AML) and terrorist financing (CFT). This significant development follows the adoption of the Principality's third progress report by the FATF during a meeting held in Mexico from February 9 to 13. The organization acknowledged Monaco's substantial progress and tangible results, particularly in the quality and speed of suspicious transaction reports submitted to the Monegasque Financial Security Authority.

Background: Monaco's Inclusion on the Grey List

The Principality of Monaco was placed on the FATF's 'grey list' in June 2024, a designation for jurisdictions under increased monitoring due to strategic deficiencies in their AML/CFT frameworks. This decision stemmed from a 2022 mutual evaluation report that highlighted areas requiring urgent reform. The grey-listing necessitated Monaco to address specific weaknesses under international monitoring, impacting its financial sector through enhanced due diligence requirements and increased reporting obligations.

Comprehensive Reforms and Structural Reinforcement

In response to the FATF's recommendations, Monaco embarked on a comprehensive reform agenda. Key measures implemented include:

• Improved Reporting Mechanisms: A marked improvement in the detection and reporting of suspicious transactions, reflecting the effectiveness of recent legislative reforms and the implementation of a risk-based supervisory approach.
• Enhanced Sanctions: Reinforcement of administrative sanctions across sectors considered high-risk, such as real estate, auctions, and corporate service providers, demonstrating Monaco's capacity for proportionate and dissuasive enforcement.
• Increased Resources: Significant structural reinforcement, including an increase in staffing at the Monegasque Financial Security Authority (AMSF) from approximately 20 to nearly 80 agents over four years, alongside enhanced supervision strategies and a fully operational sanctions unit.
• National Strategy: Adoption of a National Strategy and Action Plan for 2025–2027 to guide ongoing reforms and ensure compliance with international standards.
• Judicial Strengthening: Recruitment of three additional magistrates within the Public Prosecutor's Office and a reinforced financial crime chain.

These efforts have led to a steady rise in suspicious transaction filings, increasing by an average of 10 percent between 2023 and 2025, and a more than 20 percent climb in requests for financial intelligence from international partners.

Milestones in Progress Reporting

Monaco's commitment to addressing its deficiencies has been consistently recognized through a series of progress reports:

• First Progress Report (June 2025): The FATF formally acknowledged Monaco's sweeping reforms during a joint FATF-MONEYVAL plenary in Strasbourg on June 13, confirming that all actions scheduled for completion in this initial cycle were 'largely addressed.'
• Second Progress Report (October 2025): The FATF adopted Monaco's second progress report, highlighting significant improvements, particularly in the identification and seizure of assets suspected to originate from criminal activity.
• Third Progress Report (February 2026): The most recent adoption of the third progress report in Mexico further solidifies Monaco's advancements in its AML/CFT framework.

Additionally, MONEYVAL, the Council of Europe's anti-money laundering monitoring body, recognized Monaco's technical compliance in December 2024, noting that the Principality complies with 39 of the 40 FATF recommendations.

Path Towards Delisting

Monaco remains fully committed to continuing its efforts throughout 2026 to strengthen its judicial and supervisory framework, with the clear objective of securing its removal from the FATF grey list as soon as possible. Authorities emphasize that these reforms are part of a long-term strategy to enhance the credibility, resilience, and international confidence in Monaco's financial center.