Financial Crime World

MONACO TIGHTENS REGULATIONS AGAINST FINANCIAL CRIME

In December 2020, the National Council of Monaco adopted Law No. 1.503 on Money Laundering, Corruption and Terrorism Financing, aimed at strengthening its legal framework against financial crimes.

STRENGTHENING THE FIGHT AGAINST FINANCIAL CRIME

The adoption of Law No. 1.503 marks Monaco’s continued commitment to tackling financial crimes, including the laundering of money, corruption, and terrorist financing networks. By introducing new provisions and strengthening existing regulations, Monaco aims to enhance its ability to prevent and combat these illicit activities.

KEY ASPECTS OF THE NEW LAW

The law introduces several key novelties aimed at enhancing the prevention of financial crime:

  • Strengthened Reporting Requirements: Entities operating in Monaco are required to strengthen their reporting requirements for suspicious transactions.
  • Enhanced Due Diligence Procedures: High-risk customers will be subject to enhanced due diligence procedures, ensuring that entities understand the risks associated with these customers and take appropriate measures to mitigate them.
  • Increased Transparency in Ownership Structure: The law requires increased transparency in the ownership structure of companies operating in Monaco, making it easier to identify beneficial owners and prevent illicit activities.

REMINDERS ON AML OBLIGATIONS

As part of the implementation of Law No. 1.503, entities operating in Monaco are reminded to comply with their anti-money laundering (AML) obligations:

  • Conduct Regular Risk Assessments: Entities must conduct regular risk assessments to identify potential areas of vulnerability and take measures to mitigate these risks.
  • Implement Effective Compliance Procedures: Entities must implement effective compliance procedures to prevent and detect financial crime.
  • Report Suspicious Transactions: Entities must report suspicious transactions to the relevant authorities, ensuring that any illicit activities are identified and disrupted.

Monaco’s commitment to combating financial crime is a testament to its dedication to maintaining a secure and trustworthy financial environment.