Monaco Under Fire for Failing to Crack Down on Financial Crime

Inspectors Criticize Monaco’s Efforts Against Money Laundering

By Gaspard Sebag, Bloomberg News

Monaco has been found wanting by European inspectors who have deemed the principality’s efforts to tackle financial crime as woefully inadequate. A recent visit by a team of inspectors revealed that Monaco’s systems for detecting and prosecuting money laundering are lagging behind.

Shortcomings in Ownership Databases and Suspicious Transaction Reports

• Incomplete ownership databases: Inspectors found that Monaco’s ownership databases were incomplete, making it difficult to track the true owners of companies and assets.
• Late suspicious transaction reports: Reports on suspicious transactions were filed months late, allowing potential money launderers to operate with impunity.
• Lack of resources and sophistication: Authorities lacked the necessary resources or sophistication to tackle complex investigations.

Criticism and Concerns

Monaco’s reputation as a financial hub is under threat due to its failure to crack down on financial crime. The principality may be vulnerable to exploitation by organized crime groups, which could have serious consequences for its economy and citizens.

Prince Albert II’s Pledge Unmet

Prince Albert II had pledged to develop a robust program to prevent financial crime, but it appears that Monaco has failed to deliver on this promise. The lack of progress has raised questions about the principality’s commitment to transparency and accountability.

Pressure to Act

The inspectors’ report is likely to put pressure on Monaco’s authorities to take immediate action to address these shortcomings. With its reputation at stake, the principality must now demonstrate a genuine willingness to tackle financial crime head-on if it hopes to maintain its status as a respected financial center.