Financial Crime World

Title: Monaco’s Anti-Money Laundering Defenses Under Scrutiny: MONEYVAL Report

Overview

In a critical evaluation published on 23rd January 2023, the Council of Europe’s anti-money laundering body (MONEYVAL) identified areas of concern in the Principality of Monaco’s efforts to prevent and combat money laundering (ML) and terrorism financing (TF). This report comes after an on-site visit held in March 2022.

Assessment Findings

Key Areas of Improvement

  • Risk Understanding: Monaco needs to enhance its understanding of ML/TF risks in various sectors, such as casinos, company services providers, trusts, virtual assets, organized crime, and external threats.
  • International Cooperation: Monaco should strengthen cooperation with foreign countries in ML/TF investigations and information exchange.
  • Private Sector Compliance: Professionals in designated non-financial businesses and professions (DNFBPs) like casinos and jewellers require better training and adherence to AML/CFT measures.
  • Financial Intelligence: Monaco needs to improve its capacity to identify and prioritize ML cases, focusing on proceeds of crime and predicate offenses.
  • UN Targeted Financial Sanctions: Monaco should make more extensive efforts in implementing TFS.

Major Areas of Concern

  • Transparency and Supervision: Improve transparency in legal persons and address the poor risk understanding and weak compliance culture among DNFBPs.
  • Investigations and Prosecutions: Enhance ML investigations and prosecutions, and confiscation of proceeds of crime.
  • Third-Party ML: Address ML committed by third parties effectively.
  • Technical Resources: Expand SICCFIN’s limited human and technical resources to make full use of investigative authorities.
  • TF Implementation: Adjust awareness-raising and supervision measures to better align with the country’s risk profile related to TF.

Consequences and Recommendations

Monaco’s lack of progress in addressing these shortcomings could significantly impact its reputation as a leading international economic and financial center. The recommendations include:

  1. Enhance risk understanding and strengthen supervision and investigation capabilities.
  2. Improve international cooperation.
  3. Offer better training and resources for professionals in DNFBPs.
  4. Address ML committed by third parties and improve the implementation of TFS.

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