Monaco could move closer to leaving the FATF grey list after substantially completing a financial crime reform plan.
The wealthy Mediterranean principality remains under increased monitoring by the Financial Action Task Force (FATF).
However, the global watchdog has approved an on-site assessment of Monaco’s reforms.
Business Insider Africa reported that Monaco has reached the final stage of the process before possible removal from the list.
Monaco FATF grey list review enters final stage
The FATF grey list covers jurisdictions under increased monitoring.
Countries and territories on the list work with the FATF to address weaknesses in their systems for fighting money laundering and terrorist financing.
Monaco has now substantially completed its agreed action plan.
As a result, FATF officials will carry out an on-site assessment.
The review will examine whether Monaco has implemented the reforms and can sustain them.
African countries also reach final stage
Monaco is not alone in reaching this stage.
Côte d’Ivoire and the Democratic Republic of Congo (DRC) are among the countries that have also substantially completed their action plans.
Bulgaria has reached the same stage.
The FATF determined in June that the countries qualified for on-site assessments.
However, completing an action plan does not automatically remove a country from the grey list.
The FATF must first complete its assessment.
A successful review could then allow the jurisdiction to be considered for removal at a later FATF meeting.
What reforms has Monaco made?
The FATF required Monaco to strengthen several areas of financial oversight.
These included measures related to beneficial ownership and financial intelligence reporting.
The action plan also covered sanctions for breaches of anti-money-laundering and counter-terrorist-financing rules.
In addition, Monaco was required to strengthen judicial resources and measures for seizing assets suspected of coming from criminal activity.
Monaco remains a destination for global wealth
Monaco is one of the world’s best-known centres for private wealth.
The principality does not impose personal income or wealth taxes on most residents.
It also has a long-established private banking and wealth-management sector. These factors have helped attract wealthy residents from around the world.
The country also has connections to prominent African business figures.
Nigerian businessman Femi Otedola has a home in Monaco, according to the report. He has also hosted fellow Nigerian billionaire Aliko Dangote there.
The wider movement of African wealth abroad has attracted growing attention.
Figures cited in the report show that about 18,700 high-net-worth individuals left Africa between 2013 and 2023.
Monaco is not off the grey list yet
Despite the progress, Monaco remains on the FATF grey list.
The next step is the on-site assessment.
Its removal will depend on the results of that review and a later decision by the FATF.
Therefore, Monaco’s progress does not yet mean that the principality has formally left increased monitoring.