Money Laundering Techniques in Monaco Under Scrutiny: Authorities Rally Against Grey List Registration
Monaco is facing a critical juncture in its efforts to combat money laundering and terrorism financing. The country’s authorities have launched a concerted effort to strengthen the Principality’s anti-money laundering arsenal, as it risks being placed on the FATF Grey List if improvements are not made by May 2024.
A Battle Against Time
Prince Albert has personally emphasized the urgency of the situation, stating that “there is no room for error anymore.” The stakes are high, as Monaco’s stability and economic security are at stake. A Monitoring Committee, chaired by the Minister of State Pierre Dartout, has been created to adopt the recommendations of Moneyval’s report.
National Action Plan Against Money Laundering
The committee has finalized a National Action Plan against money laundering, terrorism financing, and weapons proliferation. The plan includes numerous concrete measures to strengthen existing actions dealing with financial crime threats, such as:
- Investigations
- Prosecutions
- International cooperation
- Obligations of care by professionals in the private sector
Strengthening the Arsenal
In one year, several urgently-approved texts have been passed to strengthen Monaco’s preventive and repressive arsenal. The Monégasque Financial Security Authority (AMSF), an independent administrative authority responsible for anti-money laundering policing, has seen its staff double in one year and is expected to hire 30 additional experts in all areas.
Deregistering Companies and Verifying Beneficial Owners
The government has made significant progress in deregistering companies, verifying beneficial owners, and cleaning up the register of commercial and civil companies. Moneyval invited Monaco to exhaustively identify dormant companies and make this information publicly accessible, which has led to sanctions being imposed.
The FATF Grey List
Monaco’s future hangs in the balance: if it does not make the necessary improvements, the country could be placed on the FATF Grey List in mid-2024. The Principality left the OECD’s Black List of non-cooperative tax havens in 2009 and intends to avoid a similar experience that would damage its image and economy.
The Fate of Monaco
As of October 2023, the FATF reviewed 129 countries and jurisdictions and publicly identified 102. Of these, 76 have since made the necessary reforms to address their AML/CFT weaknesses and have been removed from the process. Monaco is committed to quickly resolving its identified strategic deficiencies within the agreed time frame and is subject to enhanced surveillance.
The fate of the Principality hangs in the balance, as it strives to avoid a registration on the Grey List and maintain its reputation as a stable and secure financial hub.