Financial Crime World

Monaco’s CFT Regulations: Ensuring Compliance with Financial Institutions

The Commissariat aux Services Financiers (CSSF) has outlined its approach to anti-money laundering and combating the financing of terrorism (AML/CTF) in Monaco. As part of its statutory mission, the CSSF ensures that financial institutions subject to its supervision comply with professional AML/CTF obligations.

Risk-Based Approach

Under the CSSF’s risk-based approach, institutions are required to allocate resources to customers and products deemed higher-risk. The authority also monitors relationships between professionals and organized crime groups, including those involved in money laundering or terrorist financing offenses.

Key Obligations

  • Financial institutions must fully cooperate with the CSSF and the Financial Intelligence Unit (FIU) in AML/CTF matters.
  • Institutions are required to allocate resources to customers and products deemed higher-risk.
  • The authority monitors relationships between professionals and organized crime groups.

Supervision and Enforcement

The CSSF exercises its powers through a combination of off-site and on-site supervision, using principles such as risk-based approaches and sector-specific laws. The authority can access documents, request information from supervised entities, and issue injunctions against non-compliant institutions. Failure to comply may result in administrative sanctions or criminal prosecution.

Enforcement Measures

  • Access to documents
  • Request for information from supervised entities
  • Issuance of injunctions against non-compliant institutions
  • Administrative sanctions or criminal prosecution

AML/CTF Requirements for Financial Professionals

Financial professionals operating in Monaco are obligated to adhere to AML/CTF requirements, including:

  • Customer due diligence
  • Internal management standards
  • Cooperation with authorities

Regulatory Framework

The CSSF also enforces Regulation (EU) 2015/847 on information accompanying transfers of funds, requiring financial institutions to respond promptly to requests for information from competent authorities.

Objectives

The CSSF’s efforts aim to prevent the misuse of financial systems by criminals and ensure the integrity of Monaco’s financial sector.