Financial Crime World

Headline: Monaco Urged to Crack Down on Money Laundering and Terrorist Financing as MONEYVAL Issues Scathing Report

Monaco Faces Stern Warning from MONEYVAL

Monaco received a stern warning from the Council of Europe’s anti-money laundering body, MONEYVAL, following the publication of a highly critical report. Monaco was urged to significantly improve its measures against money laundering (ML) and terrorist financing (TF).

Report Highlights Substantial Improvements Needed

Despite acknowledging Monaco’s efforts in understanding ML/TF risks and international cooperation, MONEYVAL stressed the need for substantial improvements in several areas:

  1. Transparency of Legal Persons
  2. TF Investigations and Prosecutions
  3. Supervision
  4. Confiscation of Proceeds of Crimes

Below is a more detailed look at each area that requires improvement:

The report found significant shortcomings in Monaco’s beneficial ownership (BO) checks. MONEYVAL urged Monaco to enhance transparency in BO checks and implement appropriate measures to verify the authenticity of documents.

TF Investigations and Prosecutions

Monaco was identified as having a moderate level of effectiveness in TF investigations and prosecutions. However, the report highlighted the need for improving these areas, specifically the number of convictions and confiscation measures.

Supervision

Supervision deficiencies were identified in Monaco, with the need for better fit and proper checks and the use of tailored supervision for obliged entities. The report noted that significant improvements were needed in sectors like casinos and jewellers.

Confiscation of Proceeds of Crimes

The report highlighted that the number of confiscation measures in Monaco was strikingly low. MONEYVAL urged Monaco to enhance its efforts to confiscate and forfeit the proceeds of crime.

Initiatives Encouraged but Significant Improvements Necessary

Monaco was commended for initiatives to address the United Nations targeted financial sanctions (TFS) on TF and proliferation financing (PF). However, MONEYVAL stressed that significant improvements were necessary.

Enhance International Cooperation

Monaco was urged to enhance its international cooperation, particularly in relation to mutual legal assistance and extradition requests. The report noted legislative obstacles that hinder the provision of assistance and encouraged Monaco to address these challenges.

Report’s Findings and Next Steps

MONEYVAL urged Monaco to report back in December 2024 in response to the evaluation results. Despite the report’s critical tone, it reiterated that Monaco had made commendable efforts to address ML/TF risks and encouraged the Principality to further its progress towards achieving international standards.

[Link to the Report ENGLISH / FRENCH]