Financial Crime World

Title: Monaco Urged to Strengthen AML/CFT Measures: MONEYVAL Report Highlights Key Areas for Improvement

Monaco Evaluated on Money Laundering and Terrorist Financing Risks

Jan 23, 2023, Strasbourg and Monaco - The Council of Europe’s anti-money laundering body, MONEYVAL, has published a report underscoring the need for Monaco to intensify its efforts in addressing money laundering (ML) and terrorist financing (TF) risks. The evaluation focuses on Monaco’s adherence to the Financial Action Task Force (FATF) Recommendations as of March 2022.

MONEYVAL’s Assessment of Monaco’s ML/TF Risk Management

MONEYVAL recognized Monaco’s moderate effectiveness in the following areas:

  • ML/TF risk assessment
  • International cooperation
  • Application of AML/CFT measures by the private sector
  • Utilization of financial intelligence
  • Enforcement of United Nations targeted financial sanctions on TF and proliferation financing

Areas Requiring Significant Improvement

However, Monaco must make substantial progress in the following areas:

Supervisory System

  • Strengthening supervision of ML investigations and prosecutions
  • Enhancing confiscation measures
  • Improving risk analysis in sectors like casinos, company services providers, trusts, and virtual assets
  • Conducting a more comprehensive assessment of external ML threats

Monegasque Financial Intelligence Unit (SICCFIN)

  • Addressing resource constraints which impact the use of high-quality analysis by investigative authorities

ML Investigations and Prosecutions

  • Prioritizing ML and predicate offenses
  • Refining approaches for ML investigation and prosecution
  • Implementing effective sanctions for non-compliance with AML/CFT obligations

Supervision of the Private Sector

  • Enhancing the AML/CFT culture of private-sector entities
  • Implementing adequate reporting requirements from sectors like casinos and jewellers
  • Addressing delays in implementing TF-related targeted financial sanctions
  • Improving the assessment of the non-profit sector
  • Prosecuting or convicting first TF cases

Recommendations for Future Action

MONEYVAL recommended several actions for Monaco to address the identified shortcomings:

  1. Enhance international cooperation efforts
  2. Implement more proportionate and targeted awareness-raising and supervision measures
  3. Address the private sector’s AML/CFT culture
  4. Address the TF risk analysis shortcomings

Monaco will be required to report back to MONEYVAL at the end of 2024 under its enhanced follow-up procedure.

[English Version] : <English_Report_Link>

[French Version] : <French_Report_Link>