Monaco gains praise for anti-money laundering progress

The Council of Europe has praised Monaco’s significant progress in combating money laundering and terrorist financing in a new report by Moneyval, the council’s anti-money laundering body…

Published on December 10, the report commends the Principality for implementing extensive reforms, describing the results as a “remarkable achievement.”

Monaco’s efforts follow its placement on the Financial Action Task Force (FATF) “grey list” in June 2024, a designation indicating enhanced monitoring due to gaps in financial compliance. Since then, Monaco has undertaken sweeping reforms to address deficiencies, achieving compliance with 39 out of FATF’s 40 recommendations. Seven recommendations were rated “fully compliant,” and 32 “largely compliant.” Only one, concerning new technologies like virtual assets and cryptocurrencies, remains “partially compliant.”

These advancements are the result of a comprehensive legislative and regulatory overhaul launched in early 2023. Over the past 16 months, Monaco has introduced four major legislative packages containing 481 articles, amending 11 existing laws, one Sovereign Ordinance, and three legal codes. The reforms were developed through close collaboration between the Prince’s government, the National Council, public authorities, and private sector stakeholders, reflecting a unified commitment to strengthening financial integrity.

“The progress demonstrates strong mobilisation of all stakeholders to ensure Monaco complies with international standards,” the government stated, noting its focus on combating money laundering, terrorism financing, weapons proliferation, and corruption.

The Council of Europe’s Moneyval report recognizes the Principality’s commitment to transparency and compliance, marking a significant milestone in Monaco’s ongoing efforts. Government advisor and Minister of Finance Pierre-André Chiappori emphasized that while the results send a “very favorable signal to the international community,” Monaco remains focused on addressing the remaining gaps. “Our mobilisation remains full to get off the FATF grey list according to the set timetable,” he said.

The government’s action plan, initiated in June, aims to secure Monaco’s removal from the grey list by mid-2026. Efforts include enhancing oversight of virtual assets and cryptocurrencies, aligning with European Union standards to meet international expectations in this complex area.

Monaco’s progress underscores its dedication to maintaining a robust and trusted financial system. As a global hub for finance, the Principality has long been committed to fostering transparency and combating financial crime.

With its reputation at stake, Monaco has demonstrated that it is taking the necessary steps to align with international standards and restore its standing as a leader in financial compliance. These reforms reinforce its global reputation as a trusted financial jurisdiction, paving the way for a secure and compliant future.