Monaco Urged to Strengthen Anti-Money Laundering Measures by European Body: MONEYVAL Report

Monaco is under pressure from the Council of Europe’s anti-money laundering body, MONEYVAL, to intensify its efforts against money laundering (ML) and financing of terrorism (FT). The organization published a report on Monday detailing the necessary improvements.

Key Findings

• Monaco has made some progress in addressing ML/FT risks, particularly in the banking sector, but significant improvements are required.
• Improved investigative and prosecutorial capabilities.
• Increased confiscation and recovery of proceeds of crime.
• Fortified supervisory system.

Recommendations

Improve Risk Analysis and International Cooperation

• Comprehensive analysis of risks related to casinos, company services providers, trusts, virtual assets, and organized crime threats.
• Enhance international cooperation efforts.

Enhance Investigative Capabilities

• More focus on complex cases.
• Adequate resources for investigations.

Strengthen Supervisory System

• Better beneficial ownership checks.
• Tailored supervision for obliged entities.
• Proportionate and dissuasive sanctions.

AML/CFT Measures in the Private Sector

• Concerns about quality of suspicious transaction reports.
• Encouraged to enhance interaction and cooperation.

Terrorism Financing

• No reported prosecutions or convictions.
• Encouraged to cooperate more effectively with international partners.

Next Steps

MONEYVAL will apply a more intensive follow-up procedure and has invited Monaco to report back on its progress in addressing the recommendations by December 2024. The report is available in both English and French on MONEYVAL’s website.