Compliance obligations in the Yachting Industry: Requirements in Monaco, France, and the EU

Compliance obligations in the yachting sector are not optional – they are the law. Monaco has already made this explicit, and the rest of Europe is following suit. Industry actors who fail to adopt these measures face not only reputational damage but also sanctions, penalties, or even the loss of their business licenses.

Monaco’s Law No. 1.362 already covers yacht brokers, VAT agents, and certain service providers like lawyers, tax advisors and TCSPs, and gives them strict AML obligations. France’s Code Monétaire et Financier, and the EU’s 5th Directive now apply to VAT agents, similar service providers. The EU’s 6th AML Directive and a recent update to the French Code Monétaire et Financier will also subject French and European yacht brokers to the same rulebook.


Compliance obligations in Monaco:
The Principality of Monaco, home to one of the world’s most famous yacht harbors and many yacht brokers, has been a frontrunner in instituting AML rules for this sector. In early 2022, Monaco amended its regulations to require that anyone involved in yacht sales, brokerage, charters, or management implement AML programs and customer due diligence procedures. Yacht brokers and even yacht builders now fall squarely into the category of “obliged entities” under Monaco’s AML/CFT (Countering the Financing of Terrorism) framework. This means they must identify their clients, verify owners, monitor transactions, and report any suspicious activity just like banks or other financial institutions would. Monaco’s motivation was partly to address criticisms from international evaluators; Moneyval (the Council of Europe’s AML watchdog) had highlighted gaps in Monaco’s coverage of high-risk sectors. By expanding AML duties to the yachting industry, Monaco aims to close those gaps and shed any perception that it is a haven for dirty money.

The enforcement of these rules in Monaco has real teeth. Following a February 2022 evaluation that landed Monaco on the FATF “grey list” (subjecting it to increased monitoring), the government disclosed a slew of sanctions against companies for AML violations. Since 2022, regulators have levied nearly €1.5 million in fines, and at least 38 companies – including some in the luxury sector – have faced sanctions ranging from formal warnings to temporary suspension of their licenses to operate. In short, Monaco is demonstrating that failure to comply with AML laws has serious consequences. Yacht brokers and service providers in Monaco must implement the required checks or risk being shut down. On the other hand, those that do comply help the jurisdiction improve its international standing and can advertise Monaco’s reputation as a safe, clean place to do yachting business.


Compliance obligations in European Union and France:
cross the European Union, AML regulations are tightening around the luxury industries, including yachting. France, Italy, and other EU countries are bound by successive EU Anti-Money Laundering Directives (AMLDs) which set minimum standards for member states. Under the 5th AMLD, for example, the EU expanded due diligence obligations to include more high-value goods transactions. Now, the new 6th AML Directive and accompanying EU AML Regulation (2024) go even further to harmonize rules and extend them explicitly to luxury asset dealers. EU member states will be required to transpose these rules into national law by 2027, but many countries will likely act sooner to demonstrate compliance. France has already taken the first steps to introduce legislation to bring the yacht brokers (and jet brokers) into the regulated sphere. Fiscal representatives (TVA/VAT agents are already obliged entities) and must apply AML policies and procedures in respect of their clients and their transactions. In practical terms, this means that yacht brokers and dealers throughout the EU will have to implement EU-standard AML controls, if they haven’t already. France, as a leading yachting market (especially along the Riviera), will be no exception – French authorities are already fully on board with cracking down on illicit finance in luxury assets. In fact, French law enforcement has actively participated in international efforts to seize yachts linked to corruption and crime. A high-profile example was the seizure of the 76-meter superyacht Ebony Shine, allegedly owned by Teodorin Obiang (vice-president of Equatorial Guinea), which was impounded in 2016 during a money laundering investigation; Obiang later faced trial in France for charges of embezzlement to fund his fleet of luxury cars and yachts. Such cases underscore that French and EU authorities are watching the yachting world closely and will enforce laws when they suspect assets are tied to wrongdoing.

Under EU and French laws, non-compliance with AML requirements can result in steep penalties.

Companies could face heavy fines, regulatory sanctions, and loss of registrations. Individuals responsible for serious breaches might even face criminal charges if they are found to be willfully facilitating money laundering. The era of informal, handshake-driven yacht deals is over; a compliance culture is now mandatory. Given that reality, industry players in Monaco, France, and across Europe are wise to adopt the new rules swiftly and wholeheartedly. Doing so not only avoids the pain of enforcement actions but also positions those businesses as responsible and forward-looking.



The introduction of AML obligations in the high-value yachting industry represents a turning point – one that ultimately benefits the industry despite the additional costs and paperwork involved. By treating yachts more like other financial assets in terms of scrutiny, regulators are closing a loophole that criminals had sought to exploit. For the yachting sector, this means a period of adjustment: brokers and agents must update their compliance programs, train staff, and sometimes invest in new processes or software to perform due diligence. There may be moments of friction, as when a long-time client is asked for identification documents or proof of funds. However, these short-term inconveniences pale in comparison to the long-term gains of a cleaner, more transparent market.

By embracing AML obligations fully, the yachting industry secures a more sustainable and reputable future for itself. The comfort afforded to clients – knowing their peers and counterparties are reputable – fosters a healthier business environment. The ability to market compliance as a feature helps progressive firms stand out and attract the best clients. And crucially, aligning with legal requirements in Monaco, the EU, and beyond keeps businesses on the right side of the law, avoiding fines or shutdown and allowing them to thrive unencumbered by scandal.


Read more here about Why AML Obligations Are a Strategic Advantage in the High-Value Yachting Industry


At Rosemont Yacht Services in Monaco we understand the intricacies of the yachting industry, and can advise on appropriate yacht ownership structuring and yacht administration. We can assist clients in responding to compliance requests because we understand complex business structures commonly used for estate planning purposes.

Rosemont International companies can help guide professionals through their AML obligations and assist with putting on place the necessary tools to ensure your businesses are compliant and your clients are protected. Contact us at p.brigham@rosemont-mc.com
 
 
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