Financial Crime World

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AML in Monaco: What You Need to Know

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As a key financial hub, Monaco takes seriously its commitment to combating money laundering and terrorist financing. In this article, we delve into the intricacies of Anti-Money Laundering (AML) regulations in Monaco, exploring how the country’s framework aligns with international standards.

Ratings Reflect Compliance

To gauge a country’s AML compliance, the Financial Action Task Force (FATF) uses a rating system. This system assigns ratings based on the extent to which countries implement FATF Recommendations, with categories including:

  • Compliant (C)
  • Largely Compliant (LC)
  • Partially Compliant (PC)
  • Non-Compliant (NC)

Monaco’s AML Performance

Benin recently submitted its Follow-Up Report for 2023, providing insight into the country’s AML progress. According to the report, Monaco has made significant strides in implementing key FATF Recommendations.

Some notable areas of compliance include:

  • Risk assessment and risk-based approach (R.1): Largely Compliant (LC)
  • National cooperation and coordination (R.2): Largely Compliant (LC)
  • Money laundering offence (R.3): Largely Compliant (LC)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6): Largely Compliant (LC)

However, Monaco has identified areas for improvement, such as:

  • Confiscation and provisional measures (R.4): Partially Compliant (PC)
  • Terrorist financing offence (R.5): Partially Compliant (PC)
  • New technologies (R.15): Non-Compliant (NC)

Key Takeaways

Monaco’s AML framework is largely in line with international standards, with the country demonstrating significant progress in implementing key FATF Recommendations. However, there are areas where improvement is needed. As a financial hub, Monaco must continue to prioritize AML efforts to maintain its reputation and prevent illicit activities.

Stay Informed

To stay up-to-date on the latest developments in AML regulations in Monaco, be sure to follow reputable sources and industry experts.