Monaco has been blacklisted by the EU for money laundering alongside countries such as Syria and Myanmar

The European Union has recently included Monaco on its list of countries deemed high risk for money laundering and terrorist financing, joining other nations like Syria, Myanmar, and Burkina Faso.

Additionally, the European Commission has placed Venezuela on the blacklist while removing the United Arab Emirates and Gibraltar. Notably, Russia remains absent from the updated list.

This update was announced with a delay of nearly a week, leading to increased speculation regarding the Commission’s decisions.

Politically Charged Topic

According to Politico, last year, the European Parliament rejected an initial proposal to remove certain countries from the list, which had been pushed by Financial Services Commissioner Maria Louise Albuquerque behind closed doors.

Members of the European Parliament (MEPs) have also urged the Commission to add Russia to the list, a move hindered by objections from the BRICS nations, including Russia itself. Recently, Czech EPP MEP Luděk Niedermayer urged the Commission to “seriously consider” putting Russia on the blacklist, per Politico’s reporting.

The European Commission typically aligns its actions with the FATF (Financial Action Task Force), established in 1989 by the G7. This time, Monaco was added to the list of countries with deficiencies in anti-money laundering measures, despite its commitment to address these issues.

When Monaco was added, the UAE was taken off the list. The EU is in competition with the US over a trade deal with the Emirates. Concerns about the UAE’s removal were eased when the country provided written assurances to enhance judicial cooperation with the EU and Europol, following a delegation of MEPs visiting the country.

However, some MEPs argue that the UAE’s efforts are inadequate. German Green MEP Rasmus Andresen stated that “the UAE has not made sufficient progress” and warned that a trade agreement with the Emirates could enable “criminals to funnel illegal funds back into our financial system.”

In Spain, the center-right party expressed disappointment over Gibraltar’s removal from the high-risk list.

Recent Changes to the High-Risk List

The following countries have been added to the high-risk list: Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.

Removed are: Barbados, Gibraltar, Jamaica, Panama, Philippines, Senegal, Uganda, and the United Arab Emirates.