Monaco: A Haven for International Criminals
Monaco, the tiny principality on the French Riviera, has gained notoriety as a hub for international criminals involved in both licit and illicit markets. The country’s history of secretive banking practices and tax havens continues to attract individuals with ties to organized crime, authoritarian strongmen, and those seeking to avoid scrutiny.
The Criminals
According to sources, most of Monaco’s population is not born in the principality, which facilitates the operations of transnational criminal actors and organizations. Some of the notable groups and individuals allegedly active in Monaco include:
- Lucchese and Genovese crime families
- Black Sea and Khazarian mafias
- Individuals connected to Russian President Vladimir Putin and Crimean leader Sergey Aksyonov
- Calabrian ‘Ndrangheta and Neapolitan Camorra
- Russian oligarchs
Challenges
Experts warn that it is difficult to distinguish between foreign actors and private sector actors in Monaco, as they are frequently entangled. This allows private sector actors to participate in organized crime-related activities to the same degree as foreign nationals, making money laundering a significant concern.
Governance and Leadership
Monaco’s leadership has faced criticism for its lack of transparency and cooperation with international authorities. While law enforcement agencies have anti-corruption squads, corruption remains a concern, despite recent progress in government transparency and ethics.
Leadership and Governance
- Monaco is party to most international treaties and conventions pertaining to organized crime
- Progress from ratification to implementation has been slow
- Law enforcement agencies have anti-corruption squads, but corruption remains a concern
Criminal Justice and Security
Monaco’s policing system is strong, with one of the highest officers-to-population ratios in the world. This, combined with the low level of organized crime, ensures that Monaco’s criminal markets are policed effectively.
Criminal Justice and Security
- Policing system is strong
- High officers-to-population ratio
- Low level of organized crime
- Independent judiciary, but transparency concerns remain
Economic and Financial Environment
Historically, Monaco has been an uncooperative tax haven, but it has since adopted measures to combat money laundering and terrorist financing. The government has created a financial investigation unit and is modernizing the banking and financial sector to make it more resilient to money laundering threats.
Economic and Financial Environment
- Historically, an uncooperative tax haven
- Adopted measures to combat money laundering and terrorist financing
- Created a financial investigation unit
- Modernizing the banking and financial sector
Civil Society and Social Protection
Civil liberties, including freedom of expression within the media, are respected. Monaco has laws providing for the compensation and legal representation of victims of crimes, especially victims of sexual violence.
Civil Society and Social Protection
- Respect for civil liberties
- Laws providing for victim compensation and legal representation
- Weak civil society sector with few NGOs operating in the country
Conclusion
Monaco’s lack of transparency and cooperation with international authorities has created an environment conducive to organized crime and money laundering. While some progress has been made in recent years, more needs to be done to address these concerns and ensure the principality is not a haven for international criminals.