Monaco has taken a significant step in its efforts to exit the Financial Action Task Force (FATF) Grey List, following a favourable review during a joint FATF–MONEYVAL plenary session held in Strasbourg on June 13, 2025. The international bodies assessed Monaco’s progress since its inclusion on the Grey List in June 2024 and concluded that the Principality had “largely addressed” the actions required within the designated timelines.
This initial validation represents a positive development. It is not yet a full clearance. Full clearance awaits ongoing evaluations.
A Coordinated National Effort
According to official government statements, the progress to date is the result of a broad inter-agency initiative. The National Coordination Committee, established after the 2024 listing, has led efforts to strengthen regulatory oversight, enhance judicial cooperation, and improve financial intelligence operations.
Key measures have included: granting magistrates authority to oversee the Financial Security Authority (AMSF) and implementing new frameworks for judicial and customs cooperation. In addition a national strategy (2025–2027) has been launched to strengthen financial crime prevention, including money laundering, terrorism financing, and arms proliferation.
These reforms aim to improve both technical compliance and enforcement outcomes. MONEYVAL had previously recognized Monaco’s compliance with 39 of the 40 FATF recommendations as of December 2024. However, issues related to the effectiveness of implementation had led to the grey listing.
FATF and European Monitoring
Monaco continues to be listed among jurisdictions under increased monitoring. The FATF’s updated report confirms that while significant progress has been made, full resolution of outstanding issues remains a prerequisite for delisting. FATF emphasized the need for sustained commitment and measurable results in enforcement and risk-based supervision. Removal from the Grey List will depend on continued implementation and the successful completion of the FATF action plan, with a tentative target set for June 2026.
Automatic Step Conditional on Approval
In parallel, the European Commission added Monaco to its list of high-risk third countries for anti-money laundering and counter-terrorism financing (AML/CFT) on June 10, 2025. This automatic step reflects FATF methodology but final adoption is conditional on the approval by the European Parliament or the Council of the European Union.
Looking Ahead
Monaco maintains its objective of achieving full compliance and removal from the Grey List by mid-2026. Authorities have reiterated their commitment to pursuing remaining actions under the supervision of international bodies. The Government has also expressed gratitude for the constructive dialogue with FATF and MONEYVAL and acknowledged the importance of continuous institutional coordination.
FATF’s recent review is encouraging. Experts opine that grey-list removal typically requires sustained efforts over multiple review cycles. The next assessment will be important in demonstrating that Monaco’s reforms translate into long-term improvements in risk mitigation and enforcement capacity.
Monaco’s progress toward exiting the FATF Grey List is evident and officially recognized. It is important to remember that the process is ongoing. Continued reforms, tangible enforcement results, and full adherence to international standards will be essential moving forward.
