Financial Crime World

Monaco’s Financial Regulations: A Guide to Identity Verification, Microprinting, and Reflected Colors

Strengthening Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Measures

In a bid to strengthen its anti-money laundering (AML) and know-your-customer (KYC) measures, Monaco has introduced new regulations that require financial institutions to implement robust identity verification processes. Shufti Pro, a leading provider of AI-powered identity verification solutions, is at the forefront of this initiative.

Identity Verification: A Multi-Instance Process

According to Monaco’s regulations, identity verification is not a one-time process but rather a multi-instance requirement. Financial institutions must verify identities in multiple instances, including:

  • Onboarding new customers
  • Transactions exceeding specific monetary thresholds

Shufti Pro’s KYB (Know Your Business) process enables financial institutions to extract information from commercial registers or comparable official registers.

Documents Required for Verification

In Monaco, the following documents are considered proof of identity:

  • ID Card
  • Driving License
  • Residence Permit
  • Passport

For address verification, financial institutions can accept:

  • Utility bills (no older than three months)
  • Tax bills (no older than one year)
  • Bank statements (no older than three months)

Timing of Verification

Identity verification is a continuous process that requires financial institutions to verify identities in multiple instances. The timing and deployment of identity verification procedures depend on the institution’s requirements and risk assessments.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence Measures

Monaco’s regulations require financial institutions to determine if customers are PEPs or exhibit a higher-risk profile. Shufti Pro offers an AML Screening service that screens individuals’ ID attributes against:

  • Global regulatory authorities
  • Domestic databases
  • Compromised PEPs
  • Sanctioned individuals

Reliance on External Services

Financial institutions may seek the services of third-party providers to apply measures of due diligence. However, they remain liable for maintaining all compliance and fulfilling AML and KYC obligations.

Record Retention

Monaco’s Act requires financial institutions to retain data for not less than five years as part of their AML and KYC obligations. In cases where information is processed, collected, and managed by a third-party provider, financial institutions are liable to collect all necessary due diligence data without undue delay.

Conclusion

By implementing Shufti Pro’s identity verification solutions, financial institutions in Monaco can ensure compliance with the country’s regulations while minimizing risks associated with money laundering and terrorist financing.