San Marino Country Summary

FATF Status

San Marino is not 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 Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in San Marino was undertaken in 2024. According to that Evaluation, San Marino was deemed Compliant for 18 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains Highly Effective for 1 and Substantially Effective for 4 of the Effectiveness ratings.

San Marino experiences minimal criminal activity due to its small size and limited infrastructure, making it less attractive to organized crime. While there are some issues with human trafficking, drug markets, and financial crimes, particularly related to money laundering, the country has implemented measures to enhance transparency and reform its judicial system. However, the political leadership has not taken a strong stance against organized crime, and the presence of foreign mafia groups, especially from Italy, poses ongoing challenges.

San Marino has a developed economy primarily driven by finance, industry, services, retail, and tourism, making it one of the wealthiest countries in terms of GDP per capita. The country benefits from low taxation rates, attracting businesses and contributing to its significant tax haven status, while its GDP per capita and standard of living are comparable to those of Italy.

San Marino presents a favorable investment climate, characterized by low corporate tax rates and various incentives for new businesses, which significantly reduce tax burdens. The country, while not part of the European Union, has a monetary agreement allowing it to use the euro, enhancing trade and investment opportunities. Its political stability and strong financial sector further attract foreign investments.