Ultrafast magnetic moment transfer and bandgap renormalization in monolayer <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML"> <mml:msub> <mml:mi>FeCl</mml:mi> <mml:mn>2</mml:mn> </mml:msub> </mml:math>

The microscopic origin of laser-induced ultrafast demagnetization remains an open question, to which the nonthermal electronic distribution plays a vital role at the initial stage. Herein, we investigate the connection between the nonthermal electronic distribution and the ultrafast spin dynamics, as well as the electronic structure evolution in ferromagnetic ${\mathrm{FeCl}}_{2}$ monolayer using real-time time-dependent density functional theory with self-consistent Hubbard $U$ correction. Our simulations reveal that femtosecond laser pulses induce ultrafast magnetic moment transfer from Fe to Cl atoms. More importantly, through a comprehensive analysis of orbital-resolved electronic structure, we elucidate the microscopic origin of this transfer, attributing it to specific intra-atomic and inter-atomic charge transfer pathways driven by nonthermal excitations. The extent of demagnetization of Fe atoms exhibits a nonmonotonic dependence on the laser photon energy, reaching a maximum at resonant excitation. In addition, the dynamical evolution of the band structure was studied based on the eigenstates of the instantaneous Hamiltonian. Under resonant excitation, the bandgap reduction reaches up to $41%$ within tens of fs. These findings provide fundamental insights into ultrafast spin control and suggest a strategy to optically engineer the magnetism in two-dimensional magnetic materials.