Compliance Regulations in Monaco: A Strong Fight Against Money Laundering and Terrorist Financing

The Principality of Monaco has been at the forefront of combating money laundering and terrorist financing for many years, adopting a robust legal framework to combat these threats. In line with international standards recommended by the Financial Action Task Force (FATF), Monaco’s national law is designed to prevent the misuse of its financial system.

A History of Strong Regulation

Since the introduction of the country’s first anti-money laundering law in 1993, the legal and statutory framework has been regularly updated and strengthened to ensure compliance with changing international best practices. The current legal mechanism is based on Act No. 1.362, dated August 2009, which consolidated and modernized previous legislation.

Effective Implementation

To ensure effective implementation of these regulations, Monaco has established a financial investigation unit, the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN). This agency is equipped with broad investigative powers to analyze and process declarations of suspicious transactions carried out by professionals subject to the anti-money laundering law.

International Cooperation

In addition to its national efforts, Monaco has been actively engaged in international cooperation on money laundering and terrorist financing. The country has participated in the work of the MONEYVAL Experts’ Committee since joining the Council of Europe in 2004, which aims to ensure that member states have effective systems in place to combat these threats.

Egmont Group Membership

SICCFIN is also a member of the Egmont Group, an international organization comprising financial intelligence units from over 140 countries. The agency has signed 43 administrative cooperation agreements with its foreign counterparts, demonstrating Monaco’s commitment to international cooperation on combating money laundering and terrorist financing.

Conclusion

Through these legislative reforms and international commitments, the Government of Monaco is contributing to the development and modernization of the country’s banking and financial sector, guaranteeing a level of legal security for monetary and financial transactions that meets the standards expected of a modern and attractive banking center.