By Sovereign Ordinance No. 11.964 of 12 June 2026, published in the Journal de Monaco, the Principality has brought into force the Convention between the Principality of Monaco and the United Arab Emirates for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance. Signed in Dubai on 13 November 2021, the Convention entered into force for Monaco on 12 June 2026. Its implementation represents a further step in the expansion of Monaco's tax treaty network and strengthens the legal certainty of cross-border economic relations between Monaco and the United Arab Emirates. Key Features of the Convention The Convention is designed, in particular, to: allocate taxing rights between Monaco and the United Arab Emirates in order to eliminate double taxation; establish mechanisms to prevent tax evasion and tax avoidance; strengthen administrative cooperation between the competent authorities of both jurisdictions; provide a more secure legal framework for individuals and businesses with activities or investments in Monaco and the United Arab Emirates. Practical Implications The entry into force of this Convention is of particular importance for investors, multinational groups, family offices and private clients with interests in both jurisdictions. As with any tax treaty, its practical application will depend on the interpretation of its specific provisions and their interaction with the domestic tax laws of each State. The Convention may have significant implications for the taxation of cross-border income, the structuring of international investments and the organisation of cross-border business activities. Our firm regularly advises clients on the application of international tax treaties and assists them in assessing the practical implications of new tax developments affecting Monaco and cross-border transactions. Reference: Sovereign Ordinance No. 11.964 of 12 June 2026 bringing into force the Convention between the Principality of Monaco and the United Arab Emirates for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance. Official text: https://legimonaco.mc/tnc/ordonnance/2026/06-12-11.964/

Monaco Reaches a Major Milestone Following its Plenary Meeting held from 15 to 19 June 2026, the Financial Action Task Force (FATF) adopted Monaco's fourth progress report and acknowledged, on a preliminary basis, that the Principality has substantially completed the implementation of the Action Plan adopted in June 2024. This decision marks a significant milestone in the process initiated two years ago and confirms the substantial progress made by Monaco in strengthening its framework for combating money laundering, terrorist financing, and proliferation financing. The next step will be an on-site visit by the FATF to the Principality, a mandatory prerequisite for Monaco's formal removal from the FATF's "grey list" of jurisdictions under increased monitoring. This could take place during the FATF Plenary Meeting in October 2026. Beyond this important milestone, recent developments reflect a broader evolution in international standards. The focus has shifted from technical compliance alone to demonstrating the effective implementation and practical operation of AML/CFT/CPF measures. For regulated professionals, this development underscores the importance of maintaining robust, well-documented, and demonstrable compliance procedures—not only in preparation for the forthcoming FATF on-site visit, but also in anticipation of future international assessments, particularly those conducted under the MONEYVAL evaluation process.

As the FATF (Financial Action Task Force) prepares to announce its decision regarding Monaco, attention naturally focuses on one question: will the Principality exit enhanced monitoring or remain subject to increased scrutiny? Beyond the outcome of this upcoming milestone, recent developments point to a more fundamental shift: international expectations are now primarily focused on the effectiveness of anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CFT/CPF) frameworks. The decision taken by the FATF in February 2026 confirmed that the issue no longer lies so much in the alignment of the legislative framework with international standards, but rather in the ability of jurisdictions to demonstrate the practical effectiveness of their systems. This evolution is reflected in both the supervisory approach and enforcement activity of the Monegasque Financial Security Authority (AMSF), which place increasing emphasis on the governance of compliance functions, the quality of KYC procedures and the ability of regulated professionals to demonstrate the effectiveness of their controls. Recent decisions have also highlighted that remedial actions implemented after deficiencies have been identified are not necessarily sufficient to mitigate their consequences. For regulated professionals, the challenge therefore extends beyond the outcome of the June 2026 FATF plenary. It lies in ensuring that compliance frameworks are not only technically sound, but are also capable of withstanding an increasingly demanding level of regulatory scrutiny. Gordon S. Blair advises regulated professionals on AML/CFT/CPF governance, compliance reviews and preparation for AMSF inspections.