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Monaco’s Identity Verification and Anti-Money Laundering Regulations: What You Need to Know
The Principality of Monaco has implemented stringent regulations to combat money laundering and terrorist financing. As a business operating in or with ties to Monaco, it is essential to understand the requirements for identity verification and anti-money laundering (AML) measures.
Identity Verification
Identity verification is a crucial process that involves verifying an individual’s identity using various documents, including:
- ID Card
- Driving Licence
- Residence Permit
- Passport
In addition to these documents, address verification is also required. The following documents are accepted as proof of address:
- Utility bills (no older than three months)
- Tax bills (no older than one year)
- Bank statements (no older than three months)
Timing of Verification
Identity verification is not a one-time process and must be performed in multiple instances, as per regulations. The timing of verification depends on the requirements and circumstances of each case. For instance, identity verification may be required when:
- Onboarding new customers
- Dealing with transaction data exceeding certain monetary thresholds
Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD)
Monaco’s regulations require businesses to identify PEPs, individuals who hold public office or exhibit a higher risk profile. Shufti Pro provides an AML Screening service that screens ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
Reliance on External Services
Monaco’s regulations permit businesses to seek the services of third-party providers for AML measures. However, it is crucial to collect all necessary data from these external parties without undue delay. Shufti Pro serves as an external third-party service provider in this scenario.
Record Retention
According to Monaco’s Act, businesses are required to retain data for not less than five years. This information includes due diligence data collected and processed by third-party providers. Businesses remain liable for maintaining compliance with AML and KYC obligations, even when relying on external services.
Conclusion
Understanding the identity verification and anti-money laundering regulations in Monaco is crucial for businesses operating in or with ties to the Principality. By following these guidelines, you can ensure compliance with regulatory requirements and maintain a secure and trustworthy business environment.