Financial Crime World

Monaco’s Crusade Against Money Laundering and Terrorist Financing: A Model of Regulatory Compliance

Monaco, a glamorous European principality situated on the French Riviera, has established itself as a global leader in combating money laundering and terrorist financing (LBC/FT). The Principality’s commitment to upholding international standards and creating an exemplary regulatory environment has made Monaco a beacon of transparency in the banking sector.

Monaco’s Legislative Response

Monaco has been at the forefront of the critical battle against money laundering and terrorist financing for decades. The Principality’s legal response is anchored in its national laws, which conform to the standards set by the Financial Action Task Force (FATF). Several key legislation milestones include:

  • Enactment of the first anti-money laundering law in 1993
  • Comprehensive legislative revision in 2009 with Act No. 1.362

Monaco has consistently enhanced its legal and statutory framework to stay in line with evolving international best practices.

Enforcing the Law: SICCFIN’s Role

Implementation of the Act is entrusted to the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), a potent financial investigation unit. SICCFIN’s primary responsibilities are as follows:

  1. Analyzing and processing reports of suspicious transactions carried out by professionals regulated by Act No. 1.362 and related legislation.
  2. Conducting on-site visits to ensure professionals comply with their legal obligations.

International Engagements

In 2004, Monaco acceded to the Council of Europe and actively participates in the work of the MONEYVAL Experts’ Committee. The Committee’s mission is to ensure member states have robust mechanisms in place against money laundering and terrorist financing and that they adhere to relevant international standards.

On an international stage, SICCFIN is a respected member of the Egmont Group, an international assembly of financial intelligence units from over 140 countries. By the end of February 2015, SICCFIN had forged 43 administrative cooperation agreements with its international counterparts.

Reinforcing Monaco’s Commitment

Monaco’s rigorous legislative reforms and international engagements underscore the government’s unwavering resolve towards countering money laundering and terrorist financing. These actions bolster the country’s reputation as a modern banking center and foster a secure environment for financial transactions.