Monaco added to the EU’s high-risk list for money laundering: a temporary setback or a catalyst for reform?

LEGISLATION

On June 10, 2025, the European Commission officially added Monaco to its list of high-risk countries for money laundering, aligning with the Financial Action Task Force (FATF) “grey list,” where the Principality has appeared since summer 2024.

While this announcement may raise concerns, it also represents an opportunity for Monaco to strengthen its commitment to financial transparency and reinforce the foundations of its exceptional economic and real estate ecosystem.

Increased scrutiny, but not a crisis

The decision follows criticism from FATF regarding insufficient measures to combat cross-border tax evasion, asset seizure from criminal activities, and the lack of effective, dissuasive sanctions. Monaco has since responded with clear intent to address these concerns.

In a public statement, the Monegasque government acknowledged the update and reaffirmed its determination to exit the grey list promptly, launching a series of structural reforms to align with international standards.

Reputation and resilience in a global financial hub

Synonymous with luxury, stability, and discretion, Monaco remains a magnet for international investors seeking a unique lifestyle coupled with legal and financial security. While the current classification invites vigilance, it does not undermine the Principality’s long-standing reputation.

Leading institutions and private actors alike trust Monaco’s ability to act swiftly and decisively, and the government has already set reform processes in motion to enhance compliance without compromising the country’s appeal.

What this means for buyers and investors

For residents, property buyers, and global investors, the listing does not disrupt current or future real estate transactions. Rather, it calls for increased awareness and professionalism in financial practices.

At Monty + Co Real Estate, we continue to advise our clients with the highest standards of integrity and precision. Our network of trusted partners, including fully compliant financial institutions, ensures a secure and seamless investment journey in Monaco.

Looking ahead with confidence

The European Commission has reiterated that high-risk lists serve as a preventive tool to protect the EU’s financial ecosystem. Several countries—including the United Arab Emirates—have recently exited the grey list by implementing robust reforms.

Monaco, with its deep-rooted culture of excellence and strong institutional frameworks, is well-positioned to return swiftly to the group of compliant and trusted jurisdictions.

At Monty + Co Real Estate, we remain fully committed to guiding our clients through every regulatory shift with clarity, discretion, and expertise—because true luxury lies in confidence and foresight.