Financial Crime World

Monaco Urged to Strengthen Anti-Money Laundering Measures by MONEYVAL

In a damning report, the Council of Europe’s anti-money laundering body, MONEYVAL, has called on Monaco to enhance its efforts in combating money laundering (ML) and terrorist financing (TF) within its borders.

Key Findings

  1. Investigating and prosecuting ML/TF cases
  2. Confiscating and recovering proceeds of crime
  3. Bolstering supervisory system

The assessment of Monaco’s compliance with the Financial Action Task Force (FATF) Recommendations was carried out during an onsite visit in March 2022.

Areas of Improvement

Monaco is urged to:

  • Enhance efforts in identifying beneficial ownership
  • Increase registration and reporting requirements for legal persons and trusts
  • Improve transparency of legal persons and trusts
  • Enhance the registration and reporting for benevolent organizations

Terrorist Financing Investigations and Prosecutions

Monaco is encouraged to:

  • Enhance AML/CFT measures for investigating and prosecuting TF
  • Increase its focus on TF cases
  • Strengthen the framework for designating and implementing targeted financial sanctions related to TF and proliferation financing under UN Security Council Resolutions

Confiscation of Proceeds of Crime and Predicate Offenses

Monaco is advised to:

  • Improve the effectiveness of confiscation measures
  • Intensify efforts in confiscating proceeds of crime and predicate offenses
  • Enhance the capacity of the judicial and supervisory authorities to apply confiscation orders

Supervision

MONEYVAL recommends Monaco to:

  • Improve the effectiveness of AML/CFTsupervision
  • Implement tailored supervision for obligated entities
  • Enhance the capacity of its financial intelligence unit (SICCFIN) and improve its utilization

Sectors Requiring Greater Scrutiny

Private Sector

While the banking sector’s compliance is generally considered satisfactory, other sectors such as:

  • Casinos
  • Company services providers
  • Trusts
  • Virtual assets and Digital Asset Service Providers (DASPs)
  • Designated Non-Financial Business and Professions (DNFBPs)

require greater scrutiny and proactive engagement in preventing ML/TF.

The full report can be accessed here.

Monaco’s Ministry of Finance and Economic Affairs responded to the report, reaffirming its commitment to addressing the issues raised and continuing cooperation with MONEYVAL and other international bodies in the fight against ML/TF.

Background

This report comes at a time when Monaco faces increased scrutiny over its role in money laundering allegations, with high-profile cases involving the country’s banks and luxury real estate market receiving widespread media attention in recent years.

Strasbourg, 23 January 2023.