Financial Crime World

Monaco Cracks Down on Money Laundering and Terrorist Financing with Stringent Regulations

The Principality of Monaco has been at the forefront of combating money laundering and terrorist financing, implementing a robust legal framework that aligns with international standards set by the Financial Action Task Force (FATF). Since 1993, Monaco has been committed to updating its laws regularly to strengthen its anti-money laundering regime.

Act No. 1.362: A Cornerstone of Anti-Money Laundering Efforts

In August 2009, Monaco passed Act No. 1.362, which consolidated and modernized the country’s legal provisions on money laundering and terrorist financing. This law ensures that Monaco remains compliant with FATF recommendations and international best practices.

Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN)

To ensure effective implementation of these regulations, Monaco has established SICCFIN, a financial investigation unit entrusted with broad investigative powers. SICCFIN’s primary responsibilities include:

  • Analyzing and processing suspicious transaction declarations from professionals subject to the anti-money laundering law
  • Conducting on-site visits to monitor compliance with legal obligations

International Cooperation

Monaco has demonstrated its commitment to international cooperation in combating money laundering and terrorist financing by actively participating in:

  • The MONEYVAL Experts’ Committee, a Council of Europe body that promotes effective systems for countering these financial crimes
  • The Egmont Group, an international organization comprising over 140 countries’ financial intelligence units

Administrative Cooperation Agreements

To date, SICCFIN has signed 43 administrative cooperation agreements with foreign counterparts, further solidifying Monaco’s reputation as a responsible and compliant jurisdiction in the global financial landscape.

Conclusion

By implementing stringent regulations and strengthening its anti-money laundering regime, Monaco is positioning itself as a leader in the fight against financial crimes and promoting a safe and secure environment for economic growth. The country aims to provide a high level of legal security for monetary and financial transactions, making it an attractive destination for international investors and businesses.