Financial Crime World

Monaco’s Long-Awaited Anti-Money Laundering Ordinance Released: Bringing Substantial Changes to Compliance Framework

======================================================

The Principality of Monaco has finally released its long-awaited Ordinance implementing Law 1.403 on Anti-Money Laundering (AML). This new framework introduces significant changes to the existing AML regime and increases obligations for regulated entities operating in the jurisdiction.

Impact on Monaco’s Financial Sector

The release of this Ordinance is expected to have a profound impact on Monaco’s financial sector. The country’s anti-money laundering regulator, SICCFIN, will publish guidelines on the new law and compliance expectations in early July. These guidelines will provide much-needed clarity for businesses subject to AML obligations, enabling them to update their internal procedures and train staff accordingly.

Assessments by MONEYVAL

In anticipation of this development, representatives from MONEYVAL are scheduled to conduct a series of assessments at various Monaco-based entities, including:

  • Large and small banks
  • Asset management firms
  • Law firms
  • And others

The aim of these visits is to gauge the level of understanding and compliance with AML obligations among regulated businesses in the jurisdiction.

Action Required by Regulated Entities

Experts are advising that entities subject to AML obligations take immediate action to prepare for the upcoming assessments. This includes:

  • Ensuring staff are properly trained on AML regulations
  • Updating internal procedures to reflect the new requirements
  • Failure to do so may result in a negative impact on evaluations of the Principality and potentially even administrative sanctions.

Seeking Guidance

DL Corporate & Regulatory, a leading advisory firm with extensive experience in AML compliance, has been advising major financial institutions, banks, insurance companies, and Monaco professionals on internal procedure preparation and onsite training sessions for many years. The company is urging businesses to reach out for guidance on this critical matter.