Financial Crime World

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Monaco Urged to Step Up Fight Against Financial Crime

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The Council of Europe’s anti-money laundering body, MONEYVAL, has called on Monaco to strengthen its efforts to combat money laundering and financing of terrorism. A recent report highlights major improvements needed in areas such as supervision, investigations, prosecutions, and confiscation of proceeds of crime.

Areas for Improvement

MONEYVAL acknowledges that Monaco has demonstrated a moderate level of effectiveness in relation to:

  • Money Laundering and Terrorist Financing Risk Understanding: Monaco has shown a good understanding of the risks associated with money laundering and terrorist financing.
  • International Cooperation: Monaco is cooperating well with international partners to combat money laundering and terrorist financing.
  • Private Sector Compliance: The private sector in Monaco has implemented anti-money laundering and counter-terrorist financing obligations to some extent.

However, significant improvements are required in several areas, including:

MONEYVAL notes that Monaco needs to improve its transparency of legal persons, which is essential for identifying and preventing money laundering.

Terrorist Financing Investigations and Prosecutions

Monaco also needs to enhance its efforts in investigating and prosecuting terrorist financing cases.

Analysis of Money Laundering Risks

The report highlights the need for further analysis in certain sectors such as:

  • Casinos: Monaco’s casinos are a high-risk sector that requires more attention.
  • Company Services Providers: Company services providers, including lawyers and accountants, need to be more vigilant against money laundering risks.
  • Trusts: Monaco’s trust sector needs to improve its anti-money laundering measures.
  • Virtual Assets: The virtual assets sector is a high-risk area that requires more attention.

Enhanced Efforts Required

Monaco needs to enhance its efforts in several areas, including:

Identifying and Prioritizing Money Laundering Cases

Monaco needs to improve its ability to identify and prioritize money laundering cases.

Seizing and Confiscating Proceeds of Crime

Monaco also needs to enhance its efforts in seizing and confiscating proceeds of crime.

Recovering Assets Held by Third Parties

Monaco needs to recover assets held by third parties, which are often linked to money laundering.

Deficiencies in Supervisory System

MONEYVAL highlights deficiencies in the supervisory system, including:

  • Inadequate Beneficial Ownership Checks: Monaco’s supervisory bodies need to improve their beneficial ownership checks.
  • Risk Understanding Undermining Tailored Supervision for Obliged Entities: Monaco needs to improve its risk understanding and provide tailored supervision for obliged entities.

Enhanced Follow-up Procedure

MONEYVAL has invited Monaco to report back in December 2024 as part of an enhanced follow-up procedure based on the results of its evaluation.