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 State has a limited, tourism-based economy that primarily relies on visitors to its religious and cultural sites. The economy is supported by the production of commemorative stamps and coins, as well as banking and financial activities, although it faces challenges due to its small size and lack of a traditional industrial base.

Vatican City's investment climate is characterized by its unique status as a religious and sovereign entity, which limits opportunities for foreign investment. The Holy See adopts a cautious approach to external economic engagements, focusing on preserving its cultural and religious heritage, while its small labor force and lack of a traditional industrial base further restrict investment prospects. However, the Vatican's financial activities and its prominence as a global religious center create a stable environment for investments, particularly in tourism and cultural preservation.