The Principality of Monaco strengthens its legal instruments to fight money laundering

Accueil - Publications - The Principality of Monaco strengthens its legal instruments to fight money laundering

The Principality of Monaco strengthens its legal instruments to fight money laundering.

On 30^th November 2022, in the context of the fifth evaluation cycle of the Principality of Monaco carried out by the MONEYVAL Committee, the National Council adopted :

– Law No. 1.535 on the seizure and confiscation of instrumentalities and proceeds of crime, which has two objectives:

on the one hand, within the framework of the Monetary Agreement concluded by the Principality of Monaco with the European Union on 29^th November 2011, it transposes into domestic law the provisions of Directive 2014/42/EU of the European Parliament and of the Council of 3^rd April 2014 on the freezing and confiscation of instrumentalities and the proceeds of crime in the European Union; and

on the other hand, it responds to the observations of the MONEYVAL Committee and the FATF recommendations, concerning the anti-money laundering and countering the financing of terrorism system implemented in Monaco.

– Law No. 1.536 amending Title XI of Book IV of the Code of Criminal Procedure relating to international judicial assistance, which is intended to :

to formalize the procedure for requesting international judicial assistance;

to clarify the treatment of foreign requests issued for political purposes or that do not comply with the procedural principles laid down by the European Convention for the Protection of Human Rights and Fundamental Freedoms of 4 November 1950; and

to regulate seizure measures taken pursuant to a request for international legal assistance.

– Law No. 1.537 supplementing Law No. 1.362 of 3^rd August 2009 on the fight against money laundering, terrorist financing and corruption, which specifies, on the recommendation of the MONEYVAL Committee, that professionals carrying out a domiciliation activity are subject to the legal provisions on the fight against money laundering, terrorist financing and corruption

These new legal provisions, which came into force on 17^th December 2022, represent a further step forward in the control of anti-money laundering and reflect the Principality of Monaco’s desire to meet the highest international standards.

GORDON S. BLAIR has proven expertise in the implementation of compliance monitoring procedures and is available to assist its clients in these matters.

Our last news

🔔 UPDATE – FATF Plenary Meeting, Paris, 15–19 June 2026

Monaco Reaches a Major Milestone Following its Plenary Meeting held from 15 to 19 June 2026, the Financial Action Task Force (FATF) adopted Monaco's fourth progress report and acknowledged, on a preliminary basis, that the Principality has substantially completed the implementation of the Action Plan adopted in June 2024. This decision marks a significant milestone in the process initiated two years ago and confirms the substantial progress made by Monaco in strengthening its framework for combating money laundering, terrorist financing, and proliferation financing. The next step will be an on-site visit by the FATF to the Principality, a mandatory prerequisite for Monaco's formal removal from the FATF's "grey list" of jurisdictions under increased monitoring. This could take place during the FATF Plenary Meeting in October 2026. Beyond this important milestone, recent developments reflect a broader evolution in international standards. The focus has shifted from technical compliance alone to demonstrating the effective implementation and practical operation of AML/CFT/CPF measures. For regulated professionals, this development underscores the importance of maintaining robust, well-documented, and demonstrable compliance procedures—not only in preparation for the forthcoming FATF on-site visit, but also in anticipation of future international assessments, particularly those conducted under the MONEYVAL evaluation process.

June 2026 FATF plenary: the effectiveness of compliance frameworks at the heart of international expectations

As the FATF (Financial Action Task Force) prepares to announce its decision regarding Monaco, attention naturally focuses on one question: will the Principality exit enhanced monitoring or remain subject to increased scrutiny? Beyond the outcome of this upcoming milestone, recent developments point to a more fundamental shift: international expectations are now primarily focused on the effectiveness of anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CFT/CPF) frameworks. The decision taken by the FATF in February 2026 confirmed that the issue no longer lies so much in the alignment of the legislative framework with international standards, but rather in the ability of jurisdictions to demonstrate the practical effectiveness of their systems. This evolution is reflected in both the supervisory approach and enforcement activity of the Monegasque Financial Security Authority (AMSF), which place increasing emphasis on the governance of compliance functions, the quality of KYC procedures and the ability of regulated professionals to demonstrate the effectiveness of their controls. Recent decisions have also highlighted that remedial actions implemented after deficiencies have been identified are not necessarily sufficient to mitigate their consequences. For regulated professionals, the challenge therefore extends beyond the outcome of the June 2026 FATF plenary. It lies in ensuring that compliance frameworks are not only technically sound, but are also capable of withstanding an increasingly demanding level of regulatory scrutiny. Gordon S. Blair advises regulated professionals on AML/CFT/CPF governance, compliance reviews and preparation for AMSF inspections.

Longevity: anticipating the legal and wealth implications of longer lives

Longevity is increasingly recognised as one of the defining challenges of our time. As life expectancy increases, families, entrepreneurs and wealth holders are increasingly confronted with new questions relating to governance, succession, wealth preservation, international mobility and long-term planning. Addressing these long-term challenges is at the heart of the discussions led by the Private Longevity Council, an independent initiative bringing together experts from a broad range of disciplines. In a recent interview published by La Gazette de Monaco, Michel Bouquier explains the Council's mission: to encourage reflection and develop practical responses to the societal, economic and human implications of longer lives. As part of this initiative, Xavier de Sarrau, Managing Partner of Gordon S. Blair, contributes the legal and tax perspective to these discussions. His involvement reflects the firm's longstanding commitment to helping international families and entrepreneurs anticipate change and organise their affairs with a long-term vision. For more than a century, Gordon S. Blair has advised clients on protecting, structuring and transmitting their interests across generations and jurisdictions. In a world where longevity is redefining traditional planning models, this expertise remains more relevant than ever. Read Michel Bouquier’s interview in La Gazette de Monaco. (hyperlink) https://lagazettedemonaco.com/actualites/societe/michel-bouquier-une-structure-pour-repondre-aux-problematiques-de-la-longevite