Financial Crime World

Monaco’s Commitment to Combat Money Laundering and Terrorist Financing: An International Leader in AML Regulations

Monaco, renowned for its prestigious casinos and luxurious lifestyle, is not only known for its charm and glitz but also for its unwavering commitment to combating money laundering and terrorist financing (ML/FT). The Principality’s legal framework in this critical area sets an exemplary standard, making Monaco an international leader in Anti-Money Laundering (AML) regulations.

Monaco’s stance on ML/FT aligns with international standards recommended by the Financial Action Task Force (FATF). Since the enactment of its first AML law in 1993, Monaco has updated and strengthened its legislation to keep pace with evolving international norms. Its current legal mechanism, based on Act No. 1.362, enacted in 2009, complies with FATF Recommendations.

Effective Implementation: The Role of SICCFIN

To ensure the effective implementation of its regulations, Monaco maintains a Financial Investigation Unit, known as SICCFIN. This body:

  1. Analyzes and processes declarations of suspicious transactions conducted by professionals subject to Monaco’s AML laws.
  2. Monitors the proper implementation of these professionals’ legal obligations through on-site visits.

International Collaboration: Monaco’s Active Participation

Monaco’s commitment extends beyond its borders: it is an active participant in the MONEYVAL Experts’ Committee, which aims to ensure member states have effective systems in place to counter ML/FT and adhere to international standards. Moreover, SICCFIN is a member of the Egmont Group, an international organization comprised of over 140 countries’ financial intelligence units. As of February 2015, SICCFIN has signed 43 cooperation agreements with foreign counterparts.

A Modern and Attractive Banking Center

By adhering to international standards in combating ML/FT, Monaco continues to develop and modernize its banking and financial sector, offering a high level of legal security for monetary and financial transactions. This commitment has made Monaco a significant player in the global financial landscape.