Financial Crime World

Monaco Fights Financial Crime with Eye on Money Laundering and Terrorist Financing

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Monaco has been at the forefront of regulatory reforms in its relentless pursuit against money laundering and terrorist financing. The Principality’s commitment to combating financial crime dates back to 1993, when it introduced its first anti-money laundering law.

Since then, Monaco has continuously strengthened its legal framework by amending and updating regulations to stay ahead of evolving threats. The current legal mechanism is based on Act No. 1.362, dated August 2009, which consolidated existing laws and brought them in line with the Financial Action Task Force (FATF) recommendations.

Implementing the Mechanism

To effectively implement this mechanism, Monaco has a financial investigation unit known as the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN). With broad investigative powers, SICCFIN plays a crucial role in:

  • Analyzing and processing declarations of suspicious transactions made by professionals subject to anti-money laundering regulations
  • Conducting on-site visits to ensure that these professionals are properly implementing their legal obligations

International Cooperation

As a member of the Council of Europe since 2004, Monaco has been actively participating in the MONEYVAL Experts’ Committee, which aims to ensure that member states have an effective system in place to combat money laundering and terrorist financing. The Principality is also a member of the Egmont Group, an international organization comprising over 140 countries’ financial intelligence units.

Administrative Cooperation Agreements

In addition, SICCFIN has signed administrative cooperation agreements with 43 foreign counterparts as of February 2015, further solidifying Monaco’s commitment to international cooperation in fighting financial crime.

A Reputable and Secure Financial Hub

These legislative reforms and international commitments have contributed to the modernization of Monaco’s banking and financial sector, ensuring a level of legal security for monetary and financial transactions that meets international standards. With its proactive approach to combating money laundering and terrorist financing, Monaco aims to:

  • Establish itself as a reputable and secure financial hub
  • Attract investors and businesses while maintaining a high level of legal integrity