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Monaco Cracks Down on Cryptocurrency Money Laundering and Terrorist Financing

In a major effort to combat money laundering and terrorist financing, Monaco has strengthened its regulatory framework to tackle illicit activities in the cryptocurrency sector. The Principality has been at the forefront of anti-money laundering (AML) and counter-terrorism financing (CFT) efforts for years, adopting laws and regulations that align with international standards set by the Financial Action Task Force (FATF).

A Comprehensive Approach

At the heart of Monaco’s AML/CFT strategy is Act No. 1.362, a comprehensive legislation passed in 2009 that consolidated and updated existing provisions to combat money laundering and terrorist financing.

Key Provisions

  • The law grants the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), a financial investigation unit, broad investigative powers to monitor suspicious transactions and ensure compliance with AML/CFT obligations.
  • Professionals subject to the 2009 Act are required to make declarations of suspicious transactions, which SICCFIN analyzes and processes.

Enforcement and Compliance

The SICCFIN plays a crucial role in ensuring compliance by:

  • Conducting on-site visits to verify that professionals are implementing their legal obligations effectively.
  • Analyzing and processing declarations of suspicious transactions made by professionals subject to the 2009 Act.

International Cooperation

Monaco’s commitment to AML/CFT is further demonstrated through its active participation in:

  • The MONEYVAL Experts’ Committee, a Council of Europe body dedicated to combating money laundering and terrorist financing.
  • The Egmont Group, an international organization comprising financial intelligence units from over 140 countries.
  • Signing administrative cooperation agreements with foreign counterparts.

A Trusted Destination for Cryptocurrency Investors

By adopting stringent regulations and cooperating internationally, Monaco aims to establish itself as a trusted and attractive destination for cryptocurrency investors and businesses.