Financial Crime World

Monaco Under Scrutiny: Money Laundering Allegations and the Need for Stronger Anti-Crime Measures

The Council of Europe’s MONEYVAL committee has issued a damning report regarding Monaco’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures. The evaluation highlighted several areas in need of improvement to counteract the risk of Monaco being used for illicit activities.

Key Findings from the Report

The report from MONEYVAL urged Monaco to prioritize the following:

  1. Improving the investigation and prosecution of money laundering cases
    • Monaco had made progress in improving its framework since the previous assessment in 2015, but investigations had resulted in limited outcomes.
    • Further resources, expertise, and collaboration between law enforcement agencies were needed to address these shortcomings.
  2. Enhancing supervisory measures
    • Greater emphasis on conducting on-site inspections and utilizing digital tools for risk monitoring was necessary.
    • Monaco had taken steps to improve supervision, but a more proactive approach was required.
  3. Addressing inadequate implementation of international AML/CTF recommendations
    • Monaco was urged to improve its risk assessment methodology and the exchange of information with external financial intelligence units.

Recommendations for a Stronger Framework

The report identified the following areas where Monaco could strengthen its AML/CTF framework:

Improvement in Investigation and Prosecution

  • Allocate additional resources and expertise to investigate and prosecute money laundering cases.
  • Collaborate between law enforcement agencies to increase the effectiveness of investigations and enhance outcomes.

Enhance Supervisory Measures

  • Conduct on-site inspections to monitor for potential money laundering and terrorist financing risks.
  • Utilize digital tools to improve risk monitoring capabilities.
  • Adopt a more proactive approach to preventing and combating financial crimes.

International Cooperation

  • Address weaknesses in the risk assessment methodology and information sharing processes.
  • Enhance cooperation between Monaco and external financial intelligence units.

Conclusion

The report from the Council of Europe’s MONEYVAL committee underlined the importance of continued improvement in Monaco’s AML/CTF framework. By addressing these recommendations and bolstering its investigation, prosecution, and supervisory capabilities, Monaco can effectively reduce its vulnerability to being used as a nexus for money laundering and related financial crimes.