Monaco removed from FATF grey list while remaining on EU high-risk list

The Financial Action Task Force (FATF) ended its increased monitoring of Monaco on October 30, 2026. However, the European Union continues to include the principality on its list of high-risk third countries.

This discrepancy creates a complex regulatory challenge for financial institutions. While a removal from the FATF grey list may justify a reassessment of country-specific risks, it does not automatically trigger changes to European law or the EU high-risk list.

Financial institutions must maintain compliance with existing legal requirements, such as the German Money Laundering Act (GwG), regardless of FATF status. Experts suggest that any reduction in due diligence must be justified at the level of individual controls rather than through a blanket downgrade of all affected customers.