MONACO URGED TO STEP UP FIGHT AGAINST MONEY LAUNDERING

A recent report by the Council of Europe’s anti-money laundering body, MONEYVAL, has highlighted that Monaco needs to improve its efforts in combating money laundering and financing of terrorism.

Strong Points and Weak Areas

While Monaco has been praised for its moderate level of effectiveness in some areas, the report emphasizes that significant improvements are needed to enhance its overall efforts. The country’s supervisory system, risk understanding, and investigations into money laundering cases need strengthening. Additionally, the number of confiscation measures ordered should be increased.

Recommendations for Improvement

The report identifies several areas where Monaco needs to improve:

Transparency: Monaco needs to improve transparency in regards to legal persons.
Investigations and Prosecutions: The effectiveness of investigations and prosecutions is a concern, with a limited number of convictions and confiscation measures ordered in relation to money laundering cases.
Confiscation of Proceeds from Crime: The country’s financial intelligence unit, SICCFIN, should produce high-quality analysis that is fully utilized by investigative authorities.

Criticisms and Concerns

The report also criticizes Monaco for:

Limited Convictions: There have been no prosecutions or convictions for terrorism financing.
Risk Profile Not Reflected in Investigations and Prosecutions: The country’s risk profile is not reflected in its investigations and prosecutions.

Next Steps

MONEYVAL has invited Monaco to report back in December 2024 following its evaluation, which included a comprehensive assessment of the country’s level of compliance with Financial Action Task Force (FATF) recommendations. The body has also applied its enhanced follow-up procedure to ensure that Monaco implements the necessary reforms.

Full Report Available

The full report is available on the MONEYVAL website for those who wish to learn more about the evaluation and recommendations.