Financial Crime World

Monaco’s Crusade Against Money Laundering and Terrorist Financing: A Global Front-Runner in Financial Regulations

Monaco, famous for its luxury casinos and yacht-lined harbor, is making a name for itself in a different sphere - combating money laundering and terrorist financing (ML/TF).

Monaco: A Role Model in Financial Regulations

For over two decades, Monaco has been a role model in the financial world, implementing strict regulations exceeding international standards. Some key features of Monaco’s legal framework include:

  • Severe penalties for ML/TF activities
  • Rigorous controls for professionals in the financial sector

Monaco’s legislation, last revised through Act No. 1.362, on 3 August 2009, is a comprehensive framework against ML/TF, adhering to the FATF Recommendations.

Effective Implementation through SICCFIN

To enforce these regulations, Monaco has the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), an elite financial investigation unit. SICCFIN’s roles include:

  1. Analyzing and processing declarations of suspicious financial transactions
  2. Monitoring professionals’ adherence to legal obligations through on-site visits

Monaco’s International Commitment

Monaco’s fight against ML/TF isn’t confined within its borders. It belongs to the MONEYVAL Experts’ Committee since 2004, an international organization ensuring member states possess effective systems against ML/TF and adhere to international standards. SICCFIN is also a member of the Egmont Group, an alliance of 140+ financial intelligence units. As of February 2015, SICCFIN has signed 43 cooperation agreements with foreign counterparts.

Strengthening Monaco’s Reputation and the Financial World

These legislative reforms and international commitments illustrate Monaco’s unwavering stance on maintaining a modern and attractive banking sector, free from the taint of financial crime. This commitment not only elevates Monaco’s status as a global financial leader but also strengthens the overall security and transparency of the financial world.