Monaco has demonstrated “significant progress in the level of compliance with the FATF (Financial Action Task Force) standards,” concludes Moneyval, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. In a follow-up report released on 10th December, Moneyval highlighted the Principality’s improved measures to combat money laundering and the financing of terrorism since the adoption of its mutual evaluation report in 2022.
The report commended Monaco’s authorities for numerous reforms that have strengthened the nation’s legislative, regulatory, and institutional framework to align with FATF standards. Moneyval specifically noted improvements in compliance with 15 key recommendations, including measures on confiscation and provisional measures, targeted financial sanctions, transparency of legal arrangements, and regulation of financial institutions and non-financial businesses. Recommendations 6, 7, and 12 were re-rated as fully compliant, while 12 others advanced to largely compliant status.
Moneyval’s follow-up report also acknowledged Monaco’s remarkable progress in meeting its expectations, noting that the jurisdiction has now achieved full compliance with seven FATF recommendations and largely compliant ratings for 32 others, leaving only minor deficiencies in technical compliance. Notably, Monaco has no recommendations rated as non-compliant.
“Monaco has succeeded in meeting the general expectation of Moneyval for countries to have addressed most – if not all – of the technical compliance deficiencies within two years after the adoption of the mutual evaluation report,” stated Moneyval in the report. The authorities opted not to request a re-rating for Recommendation 15 (New technologies), which remains partially compliant and outside the scope of this evaluation.
See also: Moneyval compliance: Parliament approves new law on trusts
Within 16 months of being placed on Moneyval’s “grey list”, Monaco has enacted four new laws containing 481 articles, resulting in amendments to 11 existing laws, a Sovereign Ordinance, and three Codes, as well as the drafting of numerous implementing texts. Meanwhile, ahead of the publication of Monaco’s mutual evaluation report in January 2023, five laws were adopted in December 2022, comprising 73 articles that amended two laws and two Codes.
“This remarkable assessment is the result of a major effort initiated by the Sovereign Prince and led by the Prince’s Government, with the National Council, all the Monegasque services and authorities involved in the system for combating money laundering and the financing of terrorism, and with the private sector,” stated the Monaco government in its statement on Tuesday 10th December.
See also: Moneyval: Monaco makes public the companies, associations whose ownership is unknown
While the follow-up report focuses solely on formal legislative and institutional changes, Monaco will remain in enhanced follow-up and Moneyval has requested Monaco to report back in three years’ time on the practical implementation of its AML/CFT measures.
“We are sending a very positive signal to the international community. However, our commitment remains unwavering as we work towards exiting the FATF grey list according to the established timeline,” said Pierre-André Chiappori, Minister of Finance and Economy.
The government expects this to be achieved by mid-2026.
Monaco Life is produced by real multi-media journalists writing original content. See more in our free newsletter, follow our Podcasts on Spotify, and check us out on Threads, Facebook, Instagram, LinkedIn and Tik Tok.
Photo credit: Cassandra Tanti for Monaco Life