Financial Crime World

Monaco’s New Anti-Financial Crime Task Force: A Swift Response to Moneyval’s Call

Monaco’s dedication to combating financial crimes gained intensity this week with the establishment of a new supervisory committee. This newly formed committee is aimed at addressing money laundering, terrorist financing, and the proliferation of weapons of mass destruction. Monaco’s swift response comes shortly after a critical report by the Council of Europe’s anti-money-laundering body, Moneyval [1], which emphasized the need for Monaco to strengthen its efforts in these areas.

Monaco Acts Decisively

In the wake of Moneyval’s assessment, which identified underperformance in investigating and prosecuting money laundering, confiscating and recovering crime proceeds, and strengthening the supervisory system [2], Monaco has responded with the Sovereign Ordinance No. 9.729 [2]. This ordinance serves as the foundation for the new committee, formally signed on February 1, 2023.

The New Committee’s Mission

Key responsibilities for the committee include:

  • Serving as a coordination and monitoring mechanism for all matters related to the fight against financial crimes
  • Developing and monitoring the implementation of a national strategy and action plan
  • Continuously assessing the effectiveness of Monaco’s financial crime system
  • Analyzing international treaties and conventions
  • Collaborating with Monaco’s Advisory Committee on the Freezing of Funds and Economic Resources to implement economic sanctions
  • Submitting an Annual Activity Report on financial crimes in Monaco to both the government and the Directorate of Judicial Services

Background and Context

Plans for the creation of such a committee had been in progress since late 2021 [2]. Monaco’s quick response to the Moneyval report has generated surprise in some circles, signaling Monaco’s determination to address concerns in the international arena [3].

National Council’s Reaction

The Monaco National Council expressed “astonishment” over the government’s exclusion of the council from the first tier of influence within the new structure [3]. Despite this, the National Council intends to continue its role in supporting the committee’s mission to combat financial crimes in Monaco.

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[1] Monaco to “step up” financial crime action after damning Moneyval report, Monaco Life, February 2, 2023, https://monacolife.monaco/en/monaco-to-step-up-financial-crime-action-after-damning-moneyval-report [2] Monaco to establish a new committee to combat financial crimes, Monaco-Matin, February 2, 2023, https://www.monaco-matin.mc/monaco/monaco-creera-une-nouvelle-instance-pour-combatter-les-infractions-financieres-id636004 [3] National Council’s surprise over Monaco’s quick response to Moneyval recommendations, Monaco Tribune, February 3, 2023, https://monacotribune.com/national-council-s-surprise-over-monaco-s-quick-response-to-moneyval-recommendations/717308075/

[Photo source: Mihxi Ax for Unsplash.]