Financial Crime World

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Monaco Regulations: Expiration, MRZ, Reflected Colors, and Microprinting in Identity Verification

In a bid to curb financial crimes and ensure compliance with international regulations, Monaco has introduced strict guidelines for identity verification. According to the Monaco Act, identity verification is not a one-time process but rather a continuous requirement that must be met in multiple instances.

Documents Required for Verification

In Monaco, the following documents are considered proof of identity:

  • ID card
  • Driving license
  • Residence permit
  • Passport

For address verification, the following documents are accepted:

  • Utility bills (within the last three months)
  • Tax bills (within the last year)
  • Bank statements showing the end-user’s name and address (within the last three months or one year)

Timing of Verification

Identity verification is required at multiple instances, including:

  • During customer onboarding
  • Transaction data processing
  • When dealing with high-risk customers

The application of identity verification procedures depends on the requirements of the entity and its conveyance to Shufti Pro.

Politically Exposed Persons and EDD Measures

Under Monaco’s Enhanced Due Diligence (EDD) requirements, entities are required to determine if their customers are:

  • Politically Exposed Persons (PEPs)
  • Hold public office
  • Exhibit a higher risk profile

Shufti Pro provides an AML Screening service that screens ID attributes against watchlists of global regulatory authorities and domestic databases.

Reliance on External Services

Monaco’s regulations allow entities to seek the services of third-party providers for due diligence measures. However, entities remain liable for maintaining compliance and fulfilling AML and KYC obligations regardless of reliance on external services.

Record Retention

Entities are required to retain data for not less than five years as part of their AML and KYC obligations for due diligence. In cases where this information is processed, collected, and managed by a third-party provider, entities must collect necessary information without undue delay.

Conclusion

In conclusion, Monaco’s regulations emphasize the importance of identity verification in preventing financial crimes and ensuring compliance with international standards. Entities operating in Monaco must adhere to these guidelines to maintain their reputation and avoid legal repercussions.