MONEYVAL Reviews Reveal Uneven Progress in European Anti-Money Laundering Efforts

The Council of Europe’s anti-money laundering monitoring body, MONEYVAL, has published a new set of follow-up reports assessing the performance of Georgia, Montenegro, Poland and Slovakia, revealing mixed outcomes in how effectively these countries have strengthened their frameworks to combat illicit finance. While several states have recorded meaningful legislative and regulatory advances, others continue to face persistent shortcomings in meeting technical compliance standards set at the international level. The findings underscore the role of ongoing evaluation in safeguarding the global financial system and ensuring that member states are adequately equipped to address the risks posed by money laundering and terrorist financing.

The reports offer a detailed assessment of each country’s alignment with the 40 recommendations issued by the Financial Action Task Force, which serve as the global benchmark for preventing the abuse of financial systems. In Georgia’s case, evaluators acknowledged efforts to enhance its anti-money laundering and counter-terrorist financing measures, but noted that progress remains incomplete. Georgia continues to be rated as only partially compliant with eight recommendations, reflecting unresolved deficiencies that limit its overall effectiveness. Despite signs of improvement, these gaps leave areas of vulnerability that could be exploited for illicit financial activities, highlighting the need for authorities to accelerate and deepen reform initiatives.

In contrast, Montenegro recorded notable progress, with several of its ratings upgraded to largely compliant. The improvements span key areas including customer due diligence requirements, the regulation of new technologies and the supervision of financial institutions. These upgrades point to a more assertive and structured approach to financial oversight and risk management. The Slovak Republic has likewise demonstrated substantial advancement following an extensive legislative reform programme that addressed numerous technical weaknesses identified in earlier evaluations. Slovakia achieved upgrades across eight recommendations, notably in areas concerning politically exposed persons and virtual asset service providers. These changes signal a clear commitment to closing regulatory gaps that could otherwise be used to obscure or transfer illicit funds, strengthening the country’s safeguards for legitimate financial activity.

Poland has also taken steps to remedy technical deficiencies, particularly in the treatment of non-profit organizations within its regulatory framework. The country improved its compliance with recommendations on new technologies by implementing European Union rules governing crypto asset markets, including the application of the travel rule for crypto transfers. Nevertheless, Poland remains partially compliant with thirteen recommendations, indicating that significant work remains to achieve full conformity with international standards. The emphasis on regulating crypto assets reflects the growing importance of digital currencies in the financial system and the challenges they pose for monitoring and tracing transactions. Robust oversight in this area is increasingly central to efforts to prevent financial crime and preserve economic stability.

Taken together, the MONEYVAL findings illustrate the evolving and demanding nature of financial regulation in a rapidly changing economic environment. As countries enact new laws and refine supervisory practices, they contribute to a stronger and more resilient regional defense against money laundering and related crimes. The continued monitoring process acts as both a benchmark and an incentive for governments to reinforce transparency and accountability within their financial systems. While the progress made by some states is significant, the persistence of partial compliance in others highlights the complexity of fully securing modern financial networks. Sustained cooperation, regular assessments and the sharing of best practices will remain essential as member states work toward meeting the highest international standards for financial integrity.

By fLEXI tEAM