Financial Crime World

Monaco’s Relentless Crusade Against Financial Crime: A Beacon of Compliance in Europe

Monaco, the glamorous principality on the French Riviera, is more than just a playground for the rich and famous. It is an unsung hero in the global fight against financial crime. Monaco’s commitment to combating money laundering and terrorist financing (ML/TF) sets an example in Europe and beyond.

A Decades-Long Dedication to Upholding International Standards

Monaco’s dedication to upholding international standards is evident from its legislative framework. The country’s laws closely adhere to the guidelines set forth by the Financial Action Task Force (FATF). This commitment began in 1993 with the first anti-money laundering law. Since then, Monaco’s legal provisions have been continually updated to accommodate evolving best practices.

Current Legislation and Enforcement

Currently, Monaco’s legal mechanism is based on Act No. 1.362, a 2009 legislation that comprehensively overhauled the previous provisions and brought them in line with FATF Recommendations. This law houses a Financial Investigation Unit, the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN).

The SICCFIN plays a dual role. it:

  • Scrutinizes suspicious transactions reported to it by professionals subject to Monaco’s anti-money laundering regulations.
  • Conducts on-site visits to ensure these professionals are meeting their legal obligations.

International Collaboration

Monaco’s membership in the Council of Europe since 2004 has solidified its involvement in the global war on financial crime. The country regularly collaborates with the MONEYVAL Experts’ Committee to ensure it adheres to international standards and counter money laundering and terrorist financing effectively.

On the international stage, SICCFIN is a member of the Egmont Group, an organization uniting financial intelligence units from over 140 countries. As of February 2015, the unit has forged 43 administrative cooperation agreements with its counterparts around the world.

Conclusion

These legislative reforms and international partnerships have positioned Monaco as a trendsetter in the banking sector. Its resolute stance against financial crime underpins its reputation and cements its place as a beacon of compliance in Europe.