Monaco and Côte d’Ivoire have made significant strides toward removal from the Financial Action Task Force (FATF) “grey list” after substantially completing their respective action plans to combat money laundering and terrorism financing. The development marks a critical turning point for Monaco, a primary financial hub for Africa’s wealthiest entrepreneurs, and Côte d’Ivoire, one of West Africa’s most resilient economies.
The Financial Action Task Force, the global watchdog for financial crimes, recently acknowledged that both jurisdictions have addressed the core deficiencies previously identified in their financial systems. This progress triggers the next phase of the evaluation process, which involves an on-site visit by FATF officials to verify the implementation and sustainability of the reforms. If successful, both nations are expected to be formally removed from the list of jurisdictions under increased monitoring during the next plenary cycle.
For Monaco, the move toward delisting is particularly significant for the African business elite. The principality has long served as a sanctuary for private wealth, investment holding companies, and family offices for billionaires from Nigeria, South Africa, and Egypt. The inclusion of Monaco on the grey list in June 2024 had introduced heightened scrutiny on transactions involving Monegasque entities, leading to delays in international transfers and increased compliance costs for African HNWIs (High Net Worth Individuals) with interests in the Mediterranean hub.
Côte d’Ivoire’s progress is equally consequential for the West African regional market. As the world’s top cocoa producer and a central driver of the WAEMU (West African Economic and Monetary Union) economy, the country has sought to strengthen its financial integrity to attract more foreign direct investment. The African Development Bank has previously noted that robust anti-money laundering frameworks are essential for maintaining the stability of regional financial markets and ensuring that local banks retain access to global correspondent banking networks.
Financial Implications for African Investors and Regional Banks
Being placed on the FATF grey list is more than a reputational blow; it carries tangible economic costs. Research by the International Monetary Fund (IMF) suggests that grey-listed countries can experience a decline in capital inflows, as international banks and investors apply higher risk premiums or exit the market entirely to avoid the administrative burden of enhanced due diligence.
The exit of Côte d’Ivoire would signal to international lenders that the country’s banking sector has matured in its ability to track the flow of illicit funds. During its time on the list, the Ivorian government worked on improving the supervision of non-financial professions, including real estate agents and lawyers, who are often seen as vulnerable links in the money laundering chain. The government also strengthened its financial intelligence unit to better identify and prosecute suspicious activity.
In Monaco, the focus of the action plan was on increasing the transparency of beneficial ownership. For African business leaders who use Monegasque structures for global trade and investment, the new requirements mean more rigorous reporting but also a more secure legal environment. The principality has increased its capacity to seek and provide international legal assistance and has improved its system for freezing assets linked to terrorism financing.
The potential removal of these jurisdictions comes at a time when other African nations are also navigating the FATF process. South Africa and Nigeria remain under increased monitoring, working through their own complex action plans to exit the list. The success of Côte d’Ivoire provides a blueprint for other sub-Saharan economies on how to align national regulatory frameworks with international standards through sustained political will and institutional reform.
What happens next is the scheduling of the on-site visits. FATF inspectors will meet with regulatory bodies, law enforcement agencies, and private sector representatives in both Monaco and Abidjan to ensure that the reforms are not merely “paper-based” but are being actively enforced. Following these visits, a final report will be presented to the FATF Plenary. If the findings remain positive, the formal delisting will facilitate smoother capital flows and lower the cost of international business for the entrepreneurs and corporations that rely on these jurisdictions as gateways for global commerce.
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