Financial Crime World

Title: Monaco Fights Financial Crimes and Terrorism Financing: A MONEYVAL Perspective

Introduction

Monaco, the glamorous European microstate, is renowned for its high-end casinos, luxury yachts, and prestigious Grand Prix race. However, beneath the surface of this exotic destination lies the challenge of combating financial crimes and terrorism financing.

Monaco’s Progress in Combating Financial Crimes

According to the Money Valuation Committee (MONEYVAL), Monaco has been making significant strides in enhancing its anti-money laundering and counter-terrorist financing (AML/CFT) regime. Key achievements include:

  • Implementation of customer due diligence measures
  • Enhanced supervision of financial institutions
  • Expansion of its financial intelligence unit

EU’s Evaluation and Monaco’s Response

Monaco’s dedication to strengthening its AML/CFT regulations has not gone unnoticed. In 2019, the European Union (EU) added Monaco to its list of “high-risk third countries” due to concerns over its legal framework in these areas. Monaco took immediate action, implementing new legislation and regulatory measures to ensure compliance:

  • Implemented new legislation and regulatory measures
  • Closely collaborated with international organizations like FATF and the European Commission
  • Signed a memorandum of understanding with FATF
  • Joined the Gulf Cooperation Council Financial Action Task Force

Challenges Monaco Faces

Despite these accomplishments, Monaco still encounters challenges in fully implementing its AML/CFT regime:

  • Complex legal framework requiring careful coordination between different authorities and jurisdictions
  • Status as a tax haven, attracting illicit activities

Conclusion

The Principality of Monaco continues to ramp up its efforts to combat financial crimes and terrorism financing. With the help of international organizations and a commitment to ongoing enhancement, Monaco aims to establish itself as a responsible and compliant member of the international financial community.

About MONEYVAL

MONEYVAL is the Council of Europe’s anti-money laundering and counter-terrorist financing body. Its mission is to assess the effectiveness of measures taken by its member states against money laundering, terrorism financing, and the financing of weapons of mass destruction. MONEYVAL evaluations are based on international standards such as FATF Recommendations.