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Monaco's Real Estate Professionals: Fighting Financial Crimes

· 3 min read
Isabella Martinez
Financial Intelligence Officer

Monaco's dedication to combating money laundering, financing of terrorism, and corruption has been unwavering since 1993. The Principality's legal framework is continually strengthened to keep pace with international best practices.

Domestic laws, such as law no.1.362 of August 3rd, 2009, and its recent amendments, outline the obligations of various professions, including real estate professionals, real estate agencies, and property dealers. These sectors are identified as high-risk in terms of threat and vulnerability.

  • Monaco's commitment to fighting financial crimes
  • High-risk sectors: real estate professionals, agencies, and dealers

SICCFIN: Monaco's National Financial Intelligence Unit​

SICCFIN (Service d'Information et de Contrôle sur les Circuits Financiers) was established to oversee the implementation of these regulations. As Monaco's national financial intelligence unit, SICCFIN is responsible for collecting, analyzing, and processing suspicious transaction reports from professionals regulated under the law.

  • SICCFIN's role in Monaco's financial system
  • Responsibilities of SICCFIN

Transparency and Compliance​

SICCFIN monitors real estate professionals' adherence to legal obligations. Regular site visits are conducted to ensure adequate procedures and controls are in place and that due diligence obligations are being met.

  • SICCFIN's role in ensuring transparency and compliance
  • Site visits and evaluations

Duty of Vigilance​

Monegasque real estate professionals have a duty of vigilance. This requirement necessitates the collection of specific information on clients and beneficial owners at the start of a business relationship and throughout the transaction.

  • Duty of vigilance for real estate professionals
  • Identifying and understanding clients and beneficial owners

Defining Beneficial Owners​

Beneficial owners are the natural person(s) who ultimately own or control the client or for whom the transaction is conducted.

  • Defining beneficial owners

Documenting Business Relationships​

Certain documents must be provided depending on whether the client is an individual or a legal entity to enable the professional to understand the client's motivation and remove any doubts about the transaction's legitimacy.

  • Documenting business relationships

Assessing Risk Levels​

Professionals must assess the risk level in various situations, such as complex transactions, high-risk countries, or Politically Exposed Persons (PEPs).

  • Assessing risk levels
  • Politically Exposed Persons (PEPs)

Reporting and Record Keeping​

Estate agents and property traders are required to keep documents and information relating to their business relationships and due diligence measures for five years following the transaction's completion. Failing to comply with these obligations can lead to severe consequences.

  • Reporting and record keeping requirements
  • Consequences of non-compliance

Conclusion​

Monaco takes a strong stance against money laundering and terrorist financing, and its efforts to maintain economic attractiveness and uphold its reputation necessitate strict adherence to these regulations. By working with a Monaco real estate agency like Valeri Agency, clients can proceed with confidence that their real estate transactions are being carried out in a fully compliant manner.

  • Monaco's stance against money laundering and terrorist financing
  • Working with a compliant real estate agency

Further Information​

For more information, please visit the Siccfin website: https://www.siccfin.mc/en

  • Resources for learning more about Monaco's regulations and financial intelligence unit