Reported by Nick Kostov

(Summary version featured below)

A corruption scandal in Monaco has shaken its royal family and long-held image of opulence and discretion. At the center is Claude Palmero, Prince Albert II’s longtime money manager, who was responsible for overseeing the prince’s vast personal fortune, royal assets, and even secret financial arrangements. The trust between Palmero and Albert collapsed in 2023 after a leak of hacked documents suggested Palmero’s involvement in corruption and influence-peddling. Prince Albert fired him and launched a sweeping palace shake-up, prompting a wave of resignations, lawsuits, and damaging revelations. The affair marked an unprecedented public breach within the centuries-old Grimaldi dynasty.

The fallout intensified when notebooks kept by Palmero were leaked, exposing intimate financial dealings of the royal family—including support for Albert’s children born out of wedlock and questionable spending by Princess Charlene. Palmero was interrogated by Monaco police, who investigated secret bank transfers, shell companies, and possibly illegal expenditures. Palmero defended his actions, arguing he always acted in the prince’s best interest, managing chaotic royal finances while shielding the family from scandal. He claimed Albert’s ignorance was implausible, asserting that any mismanagement stemmed from Albert’s detachment rather than deceit.

An internal audit launched by Prince Albert uncovered troubling practices, including Palmero’s co-investments with royal funds and unauthorized purchases like military-grade surveillance equipment. The investigation revealed a murky network of offshore companies and hidden bank accounts, making it difficult to trace royal wealth. Despite the risks of exposing private matters, Albert pursued criminal charges against Palmero, accusing him of breach of trust and money laundering. The dispute became deeply personal and public, leading to a legal and reputational battle with international attention.

In response, Palmero claimed he was being scapegoated in a palace vendetta and took his case to the European Court of Human Rights, asserting he couldn’t get a fair trial in Monaco due to Albert’s dual role as ruler and judicial head. The palace, meanwhile, scrambled to regain financial control. Key breakthroughs came after Albert’s team gained access to a Geneva bank safe containing documents that helped map out the family’s hidden holdings. Though most of the fortune was eventually accounted for and partially settled, some negotiations between the two sides continue, reflecting the complexity of untangling two decades of enmeshed finances.

Despite the scandal, Prince Albert has resumed his royal duties and public appearances alongside Princess Charlene. He remains committed to restoring governance and transparency in Monaco. A symbolic celebration of his 20-year reign is scheduled for July 19. Yet the affair has left a lasting mark on Monaco’s image as a haven for the ultra-wealthy, reinforcing its reputation—as Somerset Maugham once put it—as “a sunny place for shady people.” As Palmero continues to fight to clear his name, the saga underscores how even the most glittering monarchies are not immune to scandal and institutional reckoning.

Read full report: https://www.wsj.com/style/monaco-prince-albert-ii-scandal-49ac6b3f?mod=mhp