Monaco faces the risk of being included on an international ‘grey list’ of nations not doing enough to combat money laundering and terrorist financing, Bloomberg news agency reported on Friday.
The principality, home to the highest concentration of millionaires and billionaires globally, is reportedly making insufficient progress against illicit financial flows.
The Financial Action Task Force (FATF), which investigates how criminals launder money worldwide, maintains a blacklist of countries almost inactive against suspicious money flows and a grey list of those that have been doing little against money laundering but have pledged to improve.
Despite some progress, sources suggest Monaco is still lagging since it was reprimanded by European inspectors at the end of 2022 for its ineffectiveness in combating money laundering.
No final decision has reportedly been taken regarding Monaco’s inclusion on the grey list.
Inclusion on this list could have a negative impact on Monaco’s economy. International Monetary Fund (IMF) research shows that countries on the grey list suffer a ‘significant statistical decrease in capital inflows.’ That would pose a threat to Monaco’s significant banking sector.
Countries are added to the list based on a consensus among FATF members. Monaco would join Bulgaria, Burkina Faso, South Africa, Croatia, Vietnam, and Syria on the grey list. The blacklist only includes three countries: Iran, Myanmar, and North Korea.
