Monaco has made substantial progress towards exiting the Financial Action Task Force (FATF) grey list, a designation for jurisdictions under increased monitoring for strategic weaknesses in combating financial crimes. The Principality reached a preliminary agreement with FATF, signifying that it has largely completed its action plan on anti-money laundering and counter-terrorist financing. This comes after extensive legislative, regulatory, and operational reforms implemented over the past two years, which have strengthened Monaco's financial and judicial systems to align with international standards. An upcoming on-site visit by FATF representatives will assess the effectiveness and sustainability of these reforms, with a successful assessment being one of the final steps towards removal from the grey list.
Bulgaria is also nearing its removal from the FATF grey list, with international evaluators concluding an inspection in Sofia on September 4, 2026. The country was added to the grey list in October 2023 due to concerns over graft prosecution and oversight of non-financial firms. However, FATF confirmed in June 2026 that Bulgaria had substantially completed its agreed reform roadmap, including implementing all 40 of FATF's recommendations. Prime Minister Rumen Radev met with inspectors to demonstrate the sustainable operation of the country's registry links and law enforcement checks. The final decision on Bulgaria's exit from the warning list will be made during FATF's October 2026 plenary meeting in Paris.
Both Monaco and Bulgaria have undertaken comprehensive reforms to address the deficiencies identified by FATF. These efforts are crucial for reinforcing their international reputations and financial competitiveness, as being on the grey list can lead to increased scrutiny of financial transactions, higher compliance costs, and slower processing times. The successful completion of these reforms and the potential removal from the grey list mark significant milestones for both nations in their commitment to combating illicit finance and upholding rigorous compliance standards.
