(12)Monaco made a high-level political commitment in June 2024 to the FATF and to the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism of the Council of Europe (MONEYVAL), which is its FSRB, to strengthen the effectiveness of its AML/CFT regime. Since the adoption of its MER in December 2022, Monaco has made significant progress on several of the actions recommended in the MER, including by establishing a new combined FIU and AML/CFT supervisor, strengthening its approach to detecting and investigating TF, and implementing TFS and risk-based supervision of NPOs. Monaco will continue to work with the FATF to implement its action plan by: strengthening the understanding of risk in relation to ML and income tax fraud committed abroad; demonstrating a sustained increase in outbound requests to identify and seek the seizure of criminal assets abroad; enhancing the application of sanctions for AML/CFT breaches and breaches of basic and beneficial ownership requirements; completing its resourcing program for its FIU and strengthen the quality and timeliness of STR reporting; enhancing judicial efficiency, including through increasing resources for investigative judges and prosecutors and the application of effective, dissuasive and proportionate sanctions for ML; and increasing the seizure of property suspected to derive from criminal activities. While recognising and welcoming the commitment and progress made by Monaco so far, and encouraging further efforts, the Commission concludes that Monaco has not yet fully addressed the concerns that led to its addition to the FATF’s list of ‘Jurisdictions under Increased Monitoring’. Monaco should therefore be considered a high-risk third country.