Monaco Faces Economic Sanctions Compliance Criticism
The Principality of Monaco’s efforts to combat money laundering and terrorist financing have come under scrutiny in a recent report by the Financial Action Task Force (FATF). The evaluation assesses Monaco’s adherence to global standards for anti-money laundering and combating the financing of terrorism.
Monaco’s Rating: Partially Compliant
Monaco has received a partially compliant rating from the FATF in several areas. The report highlights concerns over the country’s ability to implement technical requirements, particularly with regards to assessing risk and applying a risk-based approach.
Areas where Monaco was found to be partially compliant
- Money laundering offence: Partially compliant
- Confiscation and provisional measures: Partially compliant
- Targeted financial sanctions related to terrorism and terrorist financing: Partially compliant
- Politically exposed persons: Partially compliant
Areas where Monaco was found to be largely compliant
- Customer due diligence: Largely compliant
- Record keeping: Largely compliant
- Reliance on third parties: Largely compliant
- Reporting of suspicious transactions: Largely compliant
- Transparency and beneficial ownership of legal persons: Partly compliant
Areas where Monaco needs to improve
- Implementing a comprehensive risk-based approach to combat money laundering and terrorist financing
- Enhancing its ability to identify and prosecute individuals involved in money laundering and terrorist financing activities
- Improving its framework for targeted financial sanctions related to terrorism and terrorist financing
Monaco has committed to addressing these concerns and implementing the necessary reforms to ensure its compliance with global standards.
Implications for Monaco’s Economy
The FATF report’s findings have significant implications for Monaco’s economy. The country’s reputation as a stable and secure financial hub is at stake, and failure to address these concerns could lead to economic sanctions from the international community.
Potential consequences
- Damage to Monaco’s banking sector
- Negative impact on the country’s GDP
- Loss of confidence in the financial system
Conclusion
The FATF report highlights Monaco’s need to improve its efforts to combat money laundering and terrorist financing. By addressing these concerns and implementing the necessary reforms, Monaco can protect its reputation as a stable and secure financial hub and avoid any negative economic consequences.