What is the real impact of the FATF grey list on the real estate market in Monaco?
Publié par Paolo Petrini le 12/02/2026
Temps de lecture
10
min.
Monegasque Real Estate Market
The FATF's grey list has not caused a drop in prices or a drop in real estate transactions in Monaco. Its impact is mainly banking and administrative, without calling into question the fundamentals of the market.
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In June 2024, Monaco was placed on the grey list of the FATF, the international body responsible for monitoring anti-money laundering and countering the financing of terrorism. In concrete terms, this means enhanced surveillance, not economic sanctions or financial sidelining.
The FATF's grey list requires technical monitoring of banking compliance mechanisms. It does not change Monegasque taxation, the legal framework for investments, or access to the real estate market in Monaco. Therefore, one question comes up regularly: does the grey list have a real impact on the Monegasque real estate market? At this stage, the analysis of transactions and the profile of international investors shows a clear observation. The issue is essentially banking and administrative. The fundamentals of the real estate market in Monaco, scarcity of land, political stability, tax attractiveness and legal certainty, remain unchanged. To understand why the market remains stable despite the grey list, it is necessary to analyse the structure of transactions and the profile of buyers.
Why Monaco is on the grey list in 2026
The FATF's grey list includes jurisdictions placed under enhanced surveillance to improve the effectiveness of their anti-money laundering and countering the financing of terrorism system. It does not involve direct economic sanctions.
Monaco's inclusion on the grey list was decided in 2024 by the Financial Action Task Force, the intergovernmental body responsible for evaluating anti-money laundering and countering the financing of terrorism mechanisms. This decision follows a so-called "mutual" evaluation, carried out according to technical criteria applied to all financial jurisdictions.
The central point was not the existence of the laws. Monaco has long had a structured regulatory framework. The issue concerned operational efficiency: number of prosecutions initiated, sanctions imposed, confiscation of assets actually executed. In other words, the ability of the system to produce measurable results.
Why Monaco was concerned
In its report, the FATF found that while technical compliance was generally satisfactory, there was still insufficient evidence of effectiveness in certain sensitive areas, including the prosecution of complex financial crimes. For an international financial centre such as Monaco, which is highly integrated into cross-border flows, these criteria are particularly scrutinised. The grey list does not mean systemic failure, but the need to accelerate and document the results.
Hope for a quick exit
After the listing in 2024, the Monegasque authorities have launched an accelerated action plan. Penal reforms, strengthening of investigative resources, increased international cooperation, mobilization of supervisory authorities. The stated objective was clear: to quickly demonstrate the effectiveness of the measures and to obtain an output in the following evaluation cycles.
In 2025, several technical steps were validated, fuelling the idea that a rapid exit was possible. Staying in 2026 may therefore surprise some observers.
A perception that is more media than economic
Inclusion on the grey list has naturally provoked comments at international level. For a financial centre like Monaco, any FATF decision has a strong symbolic significance. It affects reputation, credibility and external image.
In some media, this listing has been interpreted as a major warning signal. The term "grey list" can suggest a structural weakening or systemic risk. However, the economic reality is more nuanced. On the ground, neither the flow of international buyers, nor the volumes of real estate transactions, nor the price dynamics have experienced a break related to this decision. Investors interested in Monaco analyse above all the fundamentals: institutional stability, legal certainty, scarcity of land and tax environment. To date, we have not seen any significant change in the flow of international buyers. Recent data confirm this stability. In the second quarter of 2025, the Monegasque residential market recorded 295 transactions, compared to 181 a year earlier, an increase of +51.7%. In the new construction segment, 57 sales were concluded in the first half of 2025 for a volume of more than €2.5 billion. These historic levels demonstrate that the presence on the FATF grey list has not dampened market momentum.
The grey list is a serious regulatory issue for authorities and financial institutions. It has not resulted, at this stage, in a crisis of confidence on the part of buyers. There is therefore a gap between the external perception, often amplified by the vocabulary used, and the reality observed on the Monegasque market.
Impact of the FATF grey list on property prices in Monaco
The first element of explanation lies in the very structure of real estate in Monaco. Unlike many European jurisdictions, transactions in Monaco are mainly carried out with equity or with banking arrangements already secured upstream. The use of traditional credit is proportionally lower, especially in the high-end segments.
In this context, the strengthening of banking compliance procedures linked to the grey list has not changed the fundamental mechanics of transactions. The due diligence may be longer, the controls more detailed, the proof of origin of the funds more documented. But these requirements had already existed in Monaco for several years. Our international clients who have consulted our buying guide often confirm that this situation has not changed their investment decision, but has simply led them to anticipate more banking and administrative aspects.
Moreover, like all professionals in the sector, Petrini Exclusive Real Estate Monaco is subject to the vigilance and compliance obligations imposed by the Monegasque Financial Security Authority. This involves strict controls, thorough verification procedures and, where appropriate, the obligation to report any suspicious transactions in accordance with the applicable legal framework.
The profile of the buyers also plays a decisive role. Ultra high net worth individuals, international entrepreneurs, structured wealth families: these investors are used to regulated jurisdictions and thorough due diligence processes. For them, increased surveillance is not an obstacle in itself, but an additional parameter in an already demanding environment.
Finally, the fundamentals of the Monegasque real estate market in 2026 remain unchanged: scarcity of land, institutional stability, legal certainty and tax attractiveness. At this stage, the grey list acts as an administrative issue rather than as a factor of economic destabilization.
Why hasn't the release yet taken place in 2026?
Monaco has not yet left the FATF's grey list in 2026 because the exit process is based on the demonstration of operational efficiency over time, and not only on the adoption of legislative reforms. The FATF places a jurisdiction under enhanced supervision when it commits to correcting shortcomings in its anti-money laundering and countering the financing of terrorism framework, with a precise timetable for subsequent evaluations and Monaco has committed to follow this timetable until mid-2026.
On the technical level, the Principality has made significant progress. In December 2024, Moneyval, the Council of Europe's committee of experts, recognised Monaco as compliant with 39 of the 40 FATF recommendations as specified in the official report published by Moneyval, indicating a strong improvement in its compliance framework. Moreover, at the joint FATF-MONEYVAL meeting in June 2025, progress was deemed "broadly addressed", paving the way for the next step in the process.
However, in order to definitively exit the grey list, the FATF requires concrete and measurable results in the application of the standards, in particular: effective prosecutions, dissuasive sanctions actually applied, seizures of criminal assets, and consolidated statistics on the effectiveness of the system. It is this requirement for operational evidence over time that explains the maintenance in 2026, even if the regulatory framework is now compliant.
At the same time, the European methodology has automatically put Monaco on a European list of high-risk countries, as a direct result of its presence on the FATF's grey list, which further increases international attention ahead of the final decision expected at the next FATF session in June 2026.
An expensive but structurally stable market
Monaco's presence on the FATF's grey list in 2026 should not be analysed in isolation or emotionally. It is part of a demanding international process, focused on demonstrating the effectiveness of the control systems, and not on calling into question the Principality's economic foundations. The facts are clear. The regulatory framework has been strengthened. The technical recommendations are almost entirely validated. The requirements now focus on consolidating results over time. This phase requires rigour and consistency, but it does not reflect financial instability or structural fragility.
At the same time, the fundamentals that support real estate in the Principality remain unchanged. The offer is structurally limited by geography. Demand remains international, patrimonial and not very dependent on credit. Institutional stability and legal certainty are among the highest in the world. On these criteria, Monaco remains one of the strongest and most resilient residential markets.
For an investor, the real question is therefore not only regulatory. It is strategic. Investing in a demanding but transparent environment often reinforces the long-term value of an asset. Jurisdictions that accept international scrutiny and strengthen their standards strengthen their credibility. The Monegasque real estate market is one of the most expensive in the world. It is also one of the most supervised, the rarest and the most stable. In a global context marked by geopolitical and financial uncertainty, this stability is precisely its value.
The grey list does not redefine Monaco. It simply reminds us that the Principality is evolving in an increasingly standardised international framework. For long-term investors, the question remains the same: where to invest their capital in a safe, liquid and sustainable environment? In an uncertain world, stability is becoming scarce. In Monaco, it remains structural.
FAQ
FATF Monaco Real Estate grey list
FAQ: FATF Grey List Monaco Real Estate
- Has the FATF's grey list brought down property prices in Monaco?
No. There was no break in prices due to the grey list. The market remains driven by the scarcity of land, an international demand for assets and a high level of legal certainty, with transactions often carried out with equity. - Does the FATF's grey list have a real impact on the real estate market in Monaco?
Petrini Exclusive Real Estate Monaco has mainly noticed an administrative effect: more detailed checks on the origin of the funds, sometimes longer banking deadlines and stricter documentary requirements. Market fundamentals and the appetite of international buyers remain stable. - Why is Monaco on the FATF grey list?
Monaco has been placed under enhanced surveillance after an assessment that focuses less on the existence of laws and more on operational effectiveness: prosecutions, sanctions, confiscations and measurable results in the fight against money laundering and the financing of terrorism. - Why hasn't Monaco been removed from the grey list yet in 2026?
The exit depends on lasting evidence of effectiveness, beyond the reforms adopted. The authorities expect results consolidated over time: cases handled, sanctions applied, effective seizures and reliable statistics demonstrating the concrete application of the system. - Does the grey list change the taxation or the rules for investing in Monaco?
No. The grey list has not changed Monaco's taxation or the legal framework for investments. The impact focuses on banking compliance and the quality of the supporting documents provided during transfers, account openings and real estate acquisitions.
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