Monaco Added to List of Countries Under Increased Monitoring by Global Anti-Money Laundering Watchdog

FATF Adds Monaco to List Due to “Strategic Deficiencies”

The Financial Action Task Force (FATF), a global anti-money laundering watchdog, has added Monaco to its list of countries under increased monitoring. This move has sent shockwaves through the international financial community, joining Venezuela on the list while Turkey and Jamaica have been removed.

Why Monaco was Added to the List

According to the FATF, Monaco was added to the list due to “strategic deficiencies” in its efforts to prevent money laundering and the financing of terrorism. Despite implementing policies after being targeted by the Council of Europe’s anti-money laundering body over claims made against several figures close to Prince Albert II, the FATF found the country’s efforts to be insufficient.

Monaco’s Attractiveness for Money Laundering

Monaco attracts wealthy individuals due to its lack of income and wealth taxes, making it an attractive destination for those seeking to launder money. The country has already implemented policies aimed at addressing these concerns, but the FATF believes more needs to be done.

Response from the Government

In response to the news, Monaco’s government stated its commitment to getting off the list “in accordance with the planned deadlines.”

Turkey Removed from the List

Turkey has been removed from the list after making significant progress in combating money laundering and the financing of terrorism. A FATF team visited Turkey in May and confirmed that Ankara had taken substantive steps to improve its anti-money laundering policies.

Quote from Turkish Finance Minister

“We succeeded,” wrote Turkish Finance Minister Mehmet Simsek on social media platform X. “With this development, international investors’ confidence in our country’s financial system has become even stronger. The decision will have extremely positive consequences for the financial sector and the economy.”

Venezuela Added to the List

Venezuela was also added to the list of countries under increased monitoring by the FATF.

Implications for Monaco’s Financial Sector and Economy

The news is likely to have significant implications for Monaco’s financial sector and economy, with many investors and businesses now reconsidering their dealings with the country.