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 primarily funded by donations from Catholic believers, sales of postage stamps, and fees for admission to its museums. The Vatican employs nearly 2,000 people, with living standards for lay workers comparable to those in Rome, and its financial activities are managed by the Institute for Works of Religion, also known as the Vatican Bank.

Vatican City's investment climate is distinctive due to its status as a sovereign entity governed by the Holy See, which does not participate in conventional investment practices. Recent reforms have been implemented to enhance transparency and align with international financial standards, particularly following the establishment of a secretariat for the economy in 2014 to improve accountability and address concerns about money laundering.