Financial Crime World

Monaco’s Crusade Against Financial Crime: A Modern, Attractive Haven Compliant with International Standards

Nestled between the French Riviera and the azure Mediterranean Sea, Monaco is known for its glamour, luxury yachts, casinos, and grand prix Formula One races.However, this tiny European principality is not just about indulgence and extravagance. Monaco has been stepping up its efforts in recent decades to combat money laundering and terrorist financing (ML/TF), making it an exemplary model in this field.

International Standards and Regulations

In line with international standards set by the Financial Action Task Force (FATF), Monaco has stringent regulations that ensure compliance. Monaco’s legal framework has been continually amended and fortified since the first anti-money laundering law was enacted in 1993. The latest legal mechanism is based on Act No. 1.362, passed on August 3, 2009. This Act overhauls and modernizes provisions previously scattered across various legislations and ensures compliance with the latest FATF Recommendations.

Enforcing Regulations

To enforce these regulations effectively, Monaco has the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), a financial investigation unit. SICCFIN has two primary roles: analyzing and processing declarations of suspicious financial transactions reported by professionals under the jurisdiction of Act No. 1.362, as well as monitoring the appropriate implementation of these professionals’ obligations via on-site inspections.

International Collaborations

Since joining the Council of Europe in 2004, Monaco has actively participated in sessions of the MONEYVAL Experts’ Committee. The intention of the Committee is to ensure that all member states have implemented efficient systems for preventing ML/TF and are adhering to the relevant international standards. On an international level, SICCFIN is a member of the Egmont Group, an intergovernmental organization comprising more than 140 countries’ financial intelligence units. As of late February 2015, Monaco had signed 43 agreements for administrative collaboration with their foreign counterparts.

Conclusion

Through these legislative reforms and international collaborations, Monaco’s government plays a crucial role in establishing a level of legal security for monetary and financial transactions consistent with the standards expected of a contemporary, attractive banking hub. Monaco is not just a haven for the wealthy and famous, but also a modern, attractive destination that is fully committed to being compliant with international standards against ML/TF.

Key Points

  • Monaco has been making efforts to combat ML/TF since the 1990s.
  • Monaco’s legal framework is based on Act No. 1.362, passed on August 3, 2009.
  • SICCFIN is a financial investigation unit responsible for enforcing regulations.
  • Monaco is a member of the Egmont Group and participates in MONEYVAL sessions.
  • Monaco has signed 43 agreements for administrative collaboration with foreign counterparts.