Title: Monaco’s Committed Fight Against Financial Crimes: Money Laundering and Terrorist Financing
Monaco, the glamorous Mediterranean principality, is not just known for its iconic casinos and million-dollar yachts [1]. Behind the scene, the Principality has been an active player in the global fight against money laundering and terrorist financing (LBC/FT) [2].
Compliant with International Standards
Monaco’s commitment against financial crimes has been exemplary over the past few decades [3]. In accordance with international regulations set by the Financial Action Task Force (FATF), Monaco’s legislative framework has undergone numerous amendments [4]. The current legal mechanism is enshrined in Act No. 1.362, passed in 2009, which consolidated and updated the provisions to align with FATF Recommendations.
Key Amendments in Monaco’s Legislation
- Monaco ratified the United Nations Convention against Transnational Organized Crime in 2003.
- Monaco joined the Council of Europe in 2004.
- Monaco’s Act No. 1.362 was passed in 2009, which consolidated and updated the provisions to align with FATF Recommendations.
Law Enforcement and International Cooperation
To ensure the effective implementation of this legal mechanism, Monaco operates a Financial Investigation Unit- Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN) [5]. The unit is vested with extensive investigative powers to:
- Analyze and process suspicious transactions reported by professionals subject to Act No. 1.362 and relevant legislation.
- Carry out on-site visits to monitor professionals’ adherence to their legal obligations.
SICCFIN’s Role and International Collaborations
Monaco is an active member of the following organizations:
- Council of Europe since 2004
- MONEYVAL Experts’ Committee
- Egmont Group (43 administrative cooperation agreements)
These collaborations enhance Monaco’s ability to address financial crimes not only within its borders but also on an international scale.
Advancing Monaco’s Banking Sector
By implementing such stringent anti-money laundering regulations and joining international organizations, the Monaco government is transforming its banking sector into a reliable and modern financial center where monetary transactions are carried out under international standards and legal security [6]. This proactive stance is vital to maintain Monaco’s reputation as a reputable and responsible financial hub.
References
[1] “Monaco: The Ultimate Mediterranean Playground.” Lonely Planet, Lonely Planet, 16 Oct. 2019, https://www.lonelyplanet.com/monaco. [2] “Monaco – European country in the Mediterranean, renowned for luxury and glamour, battles against money laundering and terrorism financing.” European Union Intellectual Property Office, 14 July 2021, https://euipo.europa.eu/news/monaco-european-country-in-the-mediterranean-renowned-for-luxury-and-glamour-battles-against-money-laundering-and-terrorism-financing/. [3] “Fight against Money Laundering and Terrorist Financing in Monaco.” Monaco Government, Monaco Government, https://en.gouv.mc/Monegasque-Institutions/Ministry-of-State/Fight-against-money-laundering-and-terrorist-financing.html. [4] “Monaco’s Implementation of the FATF Recommendations: An Overview.” Monaco Government, Monaco Government, https://en.gouv.mc/Monegasque-Institutions/SICCFIN/Monaco-s-implementation-of-the-FATF-recommendations-an-overview.html. [5] “Monaco.” European Banking Federation, European Banking Federation, https://www.ebf.eu/countries/monaco.html. [6] “Principality of Monaco – Anti-Money Laundering and Countering Financing of Terrorism.” S&P Global Market Intelligence, S&P Global, 27 Jan. 2021, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/principality-of-monaco–anti-money-laundering-and-countering-financing.