The European Commission has added Monaco to its list of high-risk countries for money laundering, while de-listing the United Arab Emirates, the Commission announced on Tuesday.
The European executive’s decision is in line with the “grey list” of the Financial Action Task Force (FATF), to which Monaco was added since the Summer of 2024.
The FATF is an international body that assesses countries’ efforts to combat money laundering.
Last year, the FATF criticised Monaco for not doing enough to tackle money laundering and tax fraud committed abroad, to seize foreign criminal assets, and to enforce effective, deterrent sanctions.
On Tuesday, the Government of Monaco acknowledged the expected update, which could lead to the country being placed on the European Union list, unless the European Parliament or the EU Council decides otherwise.
EU lawmakers and Member States have up to two months to contest the new list.
Monaco also expressed its “determination” to implement measures to graduate from the FATF’s grey list.
In addition to Monaco, the European Commission has added Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Namibia, Nepal, and Venezuela to the high-risk countries subject to increased scrutiny.
The Commission removed Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda from the list, as well as the UAE.
“Identifying and listing high-risk jurisdictions remains an essential tool for preserving the integrity of the EU’s financial system,” Maria Luís Albuquerque, the European Commissioner for Financial Services, stressed.
