Financial Crime World

Money Laundering Techniques in Monaco Exposed: Principality Takes Active Steps Against Financial Crime

For years, the tiny principality of Monaco has been at the forefront of combating money laundering and terrorist financing with exemplary regulations and behavior. The country has adopted legal mechanisms to combat these financial crimes, aligning itself with international standards set by the Financial Action Task Force (FATF).

Since the first anti-money laundering law was passed in 1993, Monaco’s legal framework has undergone regular updates and strengthening to comply with changing international best practices. The current legal mechanism is based on Act No. 1.362, enacted in August 2009, which consolidated and updated the provisions scattered across various laws. This Act ensures that Monaco’s anti-money laundering system conforms to FATF Recommendations.

Enforcement and Regulation

To enforce these regulations, Monaco has a financial investigation unit called the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), empowered with broad investigative powers. SICCFIN’s primary roles include:

  • Analyzing and processing suspicious transaction declarations submitted by professionals subject to anti-money laundering laws
  • Monitoring compliance through on-site visits

International Cooperation

Since joining the Council of Europe in 2004, Monaco has actively participated in MONEYVAL Experts’ Committee meetings, which aim to ensure member states have effective systems to combat money laundering and terrorist financing. The country is also a member of the Egmont Group, an international organization comprising over 140 countries’ financial intelligence units.

Administrative Cooperation Agreements

As of February 2015, SICCFIN had signed 43 administrative cooperation agreements with foreign counterparts. These legislative reforms and international commitments demonstrate Monaco’s commitment to developing its banking and financial sector while ensuring legal security for monetary and financial transactions that meet the standards expected of a modern banking center.

Monaco’s efforts to combat money laundering and terrorist financing have been recognized internationally, showcasing the principality’s dedication to maintaining a secure and transparent financial environment.