Monaco Cracks Down on Financial Crime and Ethics: Principality Strengthens Anti-Corruption Measures in Line with International Standards
Monaco, the glamorous Mediterranean principality, is taking a significant step forward in its mission to combat financial crime and promote ethical governance. In June 2023, Monaco published Sovereign Order No. 9.931, bolstering its anti-corruption measures, aligning its regulations with international standards, and demonstrating a firm commitment to preventing corruption and promoting integrity.
Monaco’s Journey with GRECO
After acceding to the Council of Europe’s Criminal Law Convention on Corruption in 2007, Monaco has actively engaged in evaluation procedures facilitated by the Group of States against Corruption (GRECO) since 2008. Over the years, Monaco has made considerable strides in its efforts to combat corruption.
New Legislation: Sovereign Order 9.931
Sovereign Order 9.931 introduces a comprehensive legal regime for ethical conduct among Monaco’s government members. The legislation aims to meet the requirements outlined by GRECO, emphasizing the importance of:
- Loyalty
- Dignity
- Integrity
- Selflessness
- Impartiality
- Objectivity
- Professional discretion
Specific Measures
The specific measures in the order include:
- Fostering awareness and understanding among government personnel regarding ethics and regulatory compliance
- Establishing declarations of assets and interests
- Enacting disqualification and abstention procedures
- Reinforcing monitoring and tracking of gifts
- Creating an Ethics Committee and appointing a compliance officer
- Implementing a system to prevent “pantouflage” or the seamless transition of government officials into the private sector
Monaco’s next evaluation by the GRECO team is scheduled for November 2023 (fifth evaluation round). The principality is also considering additional legislation with a particular focus on extending these ethical standards to other senior executive positions.
GRECO’s Role in Anti-Corruption Policy
GRECO, established in 1999 by the Council of Europe, aims to improve its members’ abilities to combat corruption through a dynamic process of mutual evaluation, pressure, and best practice sharing. The organization contributes to identifying flaws in national anti-corruption policies, encouraging countries to undertake necessary legislative, institutional, and practical reforms.
Monaco’s Reputation
By implementing these stringent measures, Monaco seeks to solidify its reputation as a financial and ethical beacon in the European and global arenas.