Algeria and Monaco Added to EU Money Laundering Blacklist, UAE Removed

The European Commission announced on Tuesday, June 10, that Monaco has been added to its list of “high-risk” countries for money laundering and terrorist financing, marking a new phase in the European Union’s financial oversight framework.

This decision aligns with the Financial Action Task Force (FATF)’s “grey list,” which had already included the principality in the summer of 2024.

A Measure with Significant Symbolic and Financial Weight

According to the Commission, jurisdictions on this list exhibit strategic deficiencies in their national frameworks to combat money laundering and terrorist financing, warranting heightened scrutiny. “The identification and listing of high-risk jurisdictions remains a key tool for safeguarding the integrity of the EU’s financial system,” said Maria Luís Albuquerque, the European Commissioner for Financial Services.

Monaco’s inclusion on the blacklist now entails:

• Enhanced checks on financial transactions involving the principality,

• Increased oversight of banking institutions and sensitive sectors such as art, auctions, and high-end real estate,

• An obligation for EU financial institutions to adopt additional due diligence measures for funds linked to Monaco.

List Updated with Additions and Removals

At the same time, the European Commission has removed the United Arab Emirates from the blacklist, citing notable improvements in the country’s regulatory framework.

Other countries removed from the list, after meeting FATF recommendations, include Barbados, Panama, the Philippines, Senegal, Jamaica, Gibraltar, and Uganda.

Conversely, nine new countries are joining the EU blacklist alongside Monaco:
Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Namibia, Nepal, and Venezuela.

Next Steps

Before the updated blacklist takes effect, it must be approved by the European Parliament and the Council of the EU. Once adopted, it will form the legal basis for applying stricter rules to combat illicit financial flows.

The inclusion of Monaco in the EU blacklist sends a strong signal internationally, casting doubt on the principality’s long-cultivated image of financial reliability.

For the European Union, this move reflects a firm commitment to strengthening its regulatory arsenal against money laundering and demanding greater transparency from offshore jurisdictions.

Whether Monaco can exit the blacklist as swiftly as the United Arab Emirates remains to be seen.