FATF status

The Vatican City is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the Vatican City was undertaken in 2024. According to that Evaluation, the Vatican City was deemed Compliant for 5 and Largely Compliant for 30 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness ratings.

Vatican City's economy is primarily tourism-based, relying on donations from Catholic believers, museum admissions, and the sale of postage stamps, with no taxes and a duty-free status. The state employs nearly 2,000 people and manages its budget through various financial activities overseen by the Vatican Bank, although it faced a deficit in 2008 that led to reforms for better financial oversight.

Vatican City's investment climate is shaped by its status as a microstate, focusing primarily on religious and cultural tourism rather than traditional economic activities. The establishment of a secretariat for the economy in 2014 has aimed to enhance financial management and transparency, particularly in response to past issues related to money laundering. Future initiatives include exploring digital assets like NFTs to diversify revenue while upholding its cultural and religious mission.