If you live in Monaco, run a business here, work with Monaco companies or are considering establishing yourself in the Principality, there's some genuinely good news.

On Friday, 30 October 2026, Monaco was officially removed from the Financial Action Task Force (FATF) grey list.

And while international financial regulation may not be our usual topic of conversation over coffee in Monte-Carlo, I believe this particular announcement deserves our attention.

Because at its heart, this is a story about confidence.

Confidence in Monaco as a place to live, confidence in its financial institutions, confidence in doing business with Monaco companies, and confidence in the Principality's commitment to preventing illicit money from passing through its financial system.

For a small country with such an extraordinary international presence, that confidence is enormously valuable.

What has Monaco achieved?

The FATF is the international organisation responsible for establishing standards to combat money laundering, terrorist financing and other threats to the integrity of the global financial system.

In June 2024, Monaco was placed under increased monitoring, commonly known as the grey list, while it addressed identified weaknesses in its financial crime prevention and enforcement systems.

Following more than two years of intensive work, Monaco has now successfully completed its agreed action plan.

At its October 2026 meeting in Paris, the FATF confirmed that Monaco had made significant progress and could be removed from increased monitoring.

Bulgaria was also removed following its own successful reform programme.

Importantly, the FATF decision followed an on-site assessment to establish that the necessary improvements were being implemented and that Monaco had the institutional capacity and commitment to sustain them.

This is international recognition of practical reforms, not simply a political announcement.

Source: FATF, October 2026 Plenary Outcomes

Why this matters to me, and why it should matter to Monaco businesses

I've spent more than 25 years managing international companies, international trade and banking arrangements.

During that time, I've watched governments and regulatory authorities make repeated efforts to strengthen their oversight of the international banking system.

I've also seen how much international business depends on confidence between organisations, banks, customers and jurisdictions.

A commercial relationship may begin with a good product, a compelling opportunity or a personal introduction, but ultimately both parties need to trust the environment in which they are operating.

That's why I see Monaco's removal from the FATF grey list as particularly significant.

It sends a clear message that Monaco is taking its responsibilities seriously and working to ensure that the Principality cannot easily be used as a channel for illicit international financial activity.

That is exactly the kind of message international businesses, investors and financial institutions want to hear.

What has actually improved?

One of the most encouraging aspects of this announcement is that the FATF has identified specific areas in which Monaco has strengthened its systems.

These include:

• Understanding international financial crime: Stronger assessment of money laundering risks, including those connected with income tax fraud committed abroad.
• International cooperation: More requests to overseas authorities to help identify and recover criminal assets.
• Accountability and enforcement: Stronger sanctions for breaches of financial crime prevention rules and company ownership disclosure requirements.
• Financial intelligence: Additional resources for Monaco's Financial Intelligence Unit, together with improvements in the quality and timeliness of suspicious transaction reporting.
• Judicial effectiveness: Increased investigative and prosecutorial resources, and more effective penalties for money laundering.
• Recovery of criminal assets: Increased seizure of property suspected of originating from criminal activities.

These are not merely administrative changes.

They are practical measures intended to make it harder for criminal proceeds to enter, move through or benefit from Monaco's financial and commercial systems.

And that is precisely why the FATF's acceptance of Monaco's progress is so important.

Source: FATF, Monaco's Completed Action Plan, 30 October 2026

International banking: Confidence creates opportunity

International banking is built on trust, verification and cooperation between financial institutions.

When a bank or financial organisation considers dealing with another jurisdiction, it needs confidence that the appropriate systems exist to identify suspicious activity and prevent criminal money from circulating.

Monaco's progress provides stronger evidence of its commitment to those responsibilities.

I believe this should help strengthen confidence in legitimate financial relationships involving Monaco, particularly as international institutions review their own assessments of the Principality.

For Monaco residents with international financial interests, entrepreneurs operating across borders and companies dealing with overseas customers, that is a welcome development.

The benefit is not simply about moving money. It is about ensuring that legitimate international business can take place in an environment that other institutions recognise as credible and responsible.

A stronger position for Monaco companies trading internationally

Consider a company based in Monaco that wants to establish a commercial relationship with a supplier in Germany, a customer in the United Kingdom, an investor in the United States or a distribution partner in Asia.

The Monaco company may have an excellent product, experienced management and a perfectly legitimate business model.

But international counterparties also consider where a company is established and how that jurisdiction is regarded.

Monaco's improved FATF standing gives its businesses another positive point of reference when developing those relationships.

I see opportunities across many sectors, including technology, financial services, property, hospitality, professional services, luxury goods, yachting and international trade.

For existing Monaco businesses, this is a useful development to communicate to international partners.

For companies seeking new markets, it helps reinforce the Principality's credibility.

And for those of us working to encourage innovation and enterprise in Monaco, it's another reason to look positively towards the future.

Monaco startups and entrepreneurs could be important beneficiaries

I am particularly interested in what this could mean for Monaco's entrepreneurial community.

Startups and growing businesses frequently depend on international relationships from the beginning.

They may need overseas investment, payment services, software suppliers, international customers, banking facilities or commercial partnerships.

For a young company, credibility is an essential part of attracting support.

Monaco already offers an internationally recognised identity and a distinctive environment in which to develop a business.

Its improved regulatory standing strengthens that proposition.

I believe there is an opportunity to present Monaco not only as a place associated with established wealth and successful businesses, but also as a serious location for new ventures, innovation and international entrepreneurship.

Monaco should be a place where businesses can start, grow and build relationships with the world.

And developments that reinforce international confidence help support that ambition.

Considering relocating a business to Monaco?

This announcement also gives us another positive subject to discuss with business owners considering establishing operations in the Principality.

Relocation decisions are rarely based on one factor.

Business owners consider quality of life, infrastructure, taxation, access to markets, regulation, professional services, operating costs and the international reputation of a location.

Monaco has a distinctive combination of advantages, but it must also demonstrate that it is a credible and responsible place to conduct international business.

The FATF decision adds weight to that message.

For an entrepreneur considering Monaco as a base for international operations, there is now a recognised improvement in the Principality's financial regulatory standing.

Naturally, establishing a company in Monaco remains subject to the applicable authorisations, commercial requirements and individual circumstances.

But as part of the broader case for doing business here, this is a very welcome development.

What about property and investment?

International confidence is also relevant to Monaco's property and investment markets.

Many property buyers and investors have international backgrounds, and transactions frequently involve financial institutions and professional advisers across several countries.

A jurisdiction's reputation is one of the many factors that can influence how comfortable people feel committing capital.

Monaco's successful completion of its FATF action plan strengthens its credentials as a place that takes financial transparency and international cooperation seriously.

I see this as another positive foundation for Monaco's long term attractiveness to residents and investors.

International recognition for Monaco's efforts

The Council of Europe's MONEYVAL organisation has welcomed the decision.

MONEYVAL Chair Nicola Muccioli said:

“On behalf of MONEYVAL, I warmly congratulate Bulgaria and Monaco on their tremendous progress in improving the effectiveness of their AML/CFT regimes.”

He also confirmed that MONEYVAL would continue working with both countries to sustain the improvements.

Source: Council of Europe, MONEYVAL, 30 October 2026

That recognition matters because Monaco's progress has been assessed by international bodies rather than simply declared by the Principality itself.

It also reflects considerable work by Monaco's government, regulatory authorities, financial institutions, legal professionals and other organisations involved in strengthening the system.

A wider question about international financial regulation

There is another aspect of this story that I believe deserves consideration.

From my experience in international business, smaller jurisdictions can face particularly intense scrutiny because their economies and financial systems are relatively concentrated and highly visible.

Meanwhile, financial crime is a global problem that extends across some of the world's largest economies and financial centres.

I believe international financial regulation should be consistent, proportionate and equally determined to pursue serious financial crime wherever it occurs.

Smaller jurisdictions should certainly meet demanding international standards, but those standards must also be applied effectively to the larger international financial systems through which substantial sums move every day.

That is one reason I particularly welcome Monaco's achievement.

It demonstrates that a small, internationally connected jurisdiction can respond to scrutiny, strengthen its institutions and obtain recognition for doing so.

The FATF itself continues to examine the wider international picture, including the financial systems of major economies.

Source: FATF, October 2026 Plenary Outcomes

What happens next?

Monaco's international regulatory work will continue, with MONEYVAL supporting the Principality in maintaining the improvements recognised by FATF.

Although Monaco was removed from the FATF grey list on 30 October 2026, it remained on the European Union's separate list of high risk third countries as at 2 November 2026.

Removal from the EU list requires a separate legal decision, and the applicable enhanced financial due diligence requirements remain in place until that change takes effect.

For Monaco residents and businesses, the encouraging news is that the FATF decision represents a significant achievement in strengthening international confidence.

Sources: European Commission: AML/CFT high risk third countries; EU Delegated Regulation 2026/83; FATF October 2026 decision.

For residents and businesses, the interesting question now is how this strengthened international standing translates into practical benefits over the coming months and years.

Will international banking relationships become easier to establish?

Will overseas investors and commercial partners feel more confident engaging with Monaco businesses?

Will the Principality attract more entrepreneurs and international companies?

These are developments worth following.

Monaco's greatest asset is confidence

Monaco is famous around the world for many things.

Its exceptional location, remarkable lifestyle, sporting events, property market, yachting industry and international community have created an identity recognised far beyond its borders.

But there is another Monaco that I believe deserves greater attention.

Monaco as a place to create businesses, develop ideas, establish international partnerships, attract investment and build successful commercial relationships.

For that Monaco to flourish, international confidence is essential.

The FATF decision is a positive endorsement of the Principality's progress and its commitment to protecting the integrity of its financial system.

It's a significant achievement for a small country operating in a complex international environment.

And, in my view, it's an excellent reason to be optimistic about Monaco's future.

Good news for Monaco, good news for business, and good news for everyone who believes in the Principality's potential.

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What do you think?

If you live, work or operate a business in Monaco, I'd be interested to hear your experiences.

Have international banking or compliance requirements affected your business relationships? Are you considering establishing a company in Monaco? Do you think this announcement will encourage more international business?

Let's share experiences and help make Monaco an even better place to live, work and do business.

Carl Henry

Monaco Resident | For people who love to live the Monaco Monte-Carlo Lifestyle.