Monaco Falls Short on Anti-Money Laundering Regulations, Says FATF

A recent report by the Financial Action Task Force (FATF) has revealed that Monaco has failed to implement certain anti-money laundering regulations. The country received a mixed assessment, with some areas showing significant compliance and others falling short.

Areas of Non-Compliance

The report highlighted several areas where Monaco needs to improve, including:

Assessing risk and applying a risk-based approach (R.1)
National cooperation and coordination (R.2)
Confiscation of assets related to money laundering and terrorist financing (R.4)
Laws related to financial institution secrecy (R.9)
Customer due diligence (R.10)

Areas of Compliance

Monaco did show some compliance in areas such as:

Record-keeping (R.11)
Politically exposed persons (R.12)
Correspondent banking (R.13)
Wire transfers (R.16)

Unimplemented Recommendations

The FATF report also highlighted several recommendations that Monaco has yet to implement, including:

Targeted financial sanctions related to terrorism and terrorist financing (R.6)
Proliferation (R.7)
Non-profit organisations (R.8)
Laws related to new technologies (R.15)
Reliance on third parties (R.17)

Government Response

The Government of Monaco has pledged to work closely with the FATF to implement the necessary reforms. “We are committed to ensuring that our financial system is transparent and secure,” said a government spokesperson. “We will do everything in our power to address the issues raised by the FATF report.”

In summary, while Monaco has made some progress in implementing anti-money laundering regulations, it still falls short in several areas. The country must take immediate action to address these shortcomings and bring its regulations into line with international standards.