Monaco Urged to Enhance Anti-Money Laundering Measures by MONEYVAL

Date: 23 January 2023

The Council of Europe’s anti-money laundering (AML) and counter-terrorist financing (CTF) body, MONEYVAL, has encouraged Monaco to strengthen its efforts in the fight against money laundering (ML) and terrorist financing (TF). Monaco has come under increased scrutiny due to concerns regarding its capacity to effectively address ML and TF threats.

MONEYVAL’s Assessment

In a new report published today, MONEYVAL highlighted the need for Monaco to improve its investigation, prosecution, confiscation, and recovery of proceeds of crime. The report also emphasized the importance of strengthening its supervisory system.

Improvements and Areas for Progress

MONEYVAL acknowledged certain improvements Monaco has made in recent years but identified the following areas where further progress is required:

1. Establishment of a dedicated ML and TF prosecution unit: Monaco should establish a dedicated unit for investigating and prosecuting ML and TF cases.
2. Increasing the number of investigations and prosecutions: Monaco should increase the number of investigations and prosecutions, particularly in complex cases.
3. Adoption of a risk-based approach: Monaco’s financial supervisory authority should adopt a risk-based approach in the supervision of financial institutions.

Findings and Implications

The findings in the assessment are a reflection of the global challenge that countries face in addressing ML and TF threats, which often benefit from jurisdictional complexity and opacity.

The Importance of Commitment

MONEYVAL’s President, Mr. Daniel Köppel, emphasized the importance of Monaco’s commitment to enhance its AML/CTF efforts and reaffirmed the support of the organization in Monaco’s ongoing efforts to strengthen its AML/CTF framework.

Cooperation in the Fight Against ML and TF

This is the latest in a series of reporting findings and recommendations from MONEYVAL, which aims to assist its members in adhering to the requirements of the Financial Action Task Force (FATF). FATF is the global standard-setting body for AML/CTF.

Monaco’s commitment to working with MONEYVAL and the international community in the fight against ML and CF is a critical component of the European and global response to this transnational threat, which undermines democratic institutions, hampers economic development, and endangers the safety and security of citizens.

Monaco

  - Reputation as a financial and tourist hub
  - Increased scrutiny due to concerns regarding its capacity to address ML and TF threats

Supervisory System

  - Need for further progress in strengthening Monaco's supervisory system.