High-Stakes Financial Policy: Why Monaco Made the EU’s Money Laundering Blacklist -

The European Commission has placed Monaco on its high-risk money laundering list. It joins countries like Syria and Myanmar, marking a major shift for the wealthy Mediterranean state.

Venezuela has also been added, while the UAE and Gibraltar were removed. Russia, despite pressure from EU lawmakers, was left off yet again.

The Financial Action Task Force (FATF), a G7-founded watchdog, usually guides the EU’s blacklist updates. Monaco was included due to concerns over its financial transparency, but it has committed to addressing deficiencies. According to the Global Magnitsky Justice Campaign, millions in illicit Russian funds linked to fraud uncovered by Sergey Magnitsky have been parked in Monaco.

Meanwhile, the UAE fought to be removed from the blacklist. Written commitments to improve judicial cooperation and a parliamentary mission softened EU opposition, helping secure its delisting.

The decision wasn’t without controversy. German Greens MEP Rasmus Andresen argued the UAE had made “insufficient progress”. Spain’s center-right political faction is also frustrated over Gibraltar’s removal from the blacklist. The blacklist shuffle comes amid broader EU geopolitical maneuvering. The bloc competes with the U.S. for trade agreements, particularly with the UAE, making blacklist decisions increasingly strategic.

Critics are asking why Russia was left off the blacklist. EU Parliament members urged its inclusion, especially after FATF avoided blacklisting Moscow last year due to opposition from BRICS members.