The Principality of Monaco may soon find itself listed alongside Panama, North Korea, and Afghanistan.
According to La Lettre, the European Commission has initiated proceedings to add Monaco to the EU’s blacklist of high-risk jurisdictions, citing the principality’s insufficient results in combating money laundering and terrorist financing.
Toward Increased Scrutiny of Monaco’s Financial Sector
Already placed under “enhanced monitoring” by the Financial Action Task Force (FATF) in 2023—earning it a spot on the so-called “grey list”—Monaco now faces more severe consequences.
If the European Parliament approves the decision, inclusion on the EU’s blacklist would trigger tighter controls on all transactions to and from the principality.
The measure would apply not only to financial institutions but also to sensitive professions such as art dealers and auctioneers.
It could further complicate Monaco’s banking and commercial relationships with international and European institutions.
Reforms Deemed Insufficient
Despite stepping up its efforts to comply with international standards, Monaco has not managed to allay EU concerns.
In late 2022, the principality passed five laws to align its criminal procedural framework with global transparency norms and efforts to curb illicit financial flows.
In addition, a new supervisory body—the Monegasque Financial Security Authority (AMSF)—was established in September 2023.
Led since March 2025 by Bruno Dalles, former head of Tracfin (France’s financial intelligence unit), the AMSF has been tasked with oversight, intelligence gathering, and sanctions enforcement.
Yet these initiatives have failed to convince Brussels, which maintains that Monaco remains fertile ground for opaque financial movements.
A Reputation at Stake
Potential blacklisting would deal a serious blow to Monaco’s reputation as a discreet yet respectable financial center—long perceived as a tax haven in the heart of Europe.
The decision could also deter institutional investors who are bound by EU regulations to uphold greater financial transparency.
While the process awaits approval from the European Parliament, it reflects the EU’s growing determination to crack down on financial opacity—even when it involves a partner as high-profile as Monaco.
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