Monaco Country Summary

FATF Status

Monaco is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow up Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Monaco was undertaken in 2024. According to that Evaluation, Monaco was deemed Compliant for 7 and Largely Compliant for 32 of the FATF 40 Recommendations. It was remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Monaco exhibits a low level of crime and corruption, with organized crime and state capture being minimal concerns. The principality benefits from a strong policing system and an independent judiciary, although there are calls for enhanced anti-corruption measures and banking transparency to further bolster its resilience against potential criminal activities.

Monaco boasts a robust and open economy that actively encourages foreign investment, characterized by a high standard of living and low unemployment rates. The Principality offers significant tax advantages, including no personal income tax for foreigners and Monegasques, while corporations can benefit from various tax incentives, fostering a vibrant real estate market where non-residents account for over half of investments. Despite its small size, Monaco's economy is diverse, with key sectors including scientific and technical activities, financial services, and tourism, all supported by a stable political environment and stringent regulatory measures to ensure transparency and compliance with international standards.