Financial Crime World

Monaco’s Financial Crime Statistics: A Global Perspective

Mixed Bag of Results in Combating Financial Crime

A recent evaluation of Monaco’s efforts to combat financial crime has revealed a mixed bag of results, with the country receiving varying ratings across different aspects of anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Strengths and Weaknesses

According to the Mutual Evaluation 2022 report, Monaco received ratings ranging from “compliant” to “partially compliant” in various areas. For instance:

  • The country scored well on its assessment of risk and application of a risk-based approach.
  • It also performed well in national cooperation and coordination efforts.

However, it fell short in other areas, such as:

  • Laws and regulations regarding financial institution secrecy and correspondent banking.

Implementation of Targeted Financial Sanctions

The report highlights Monaco’s strengths in implementing targeted financial sanctions related to terrorism and terrorist financing. Additionally, the country has made efforts to regulate and supervise financial institutions.

However, it also notes that Monaco needs to improve its:

  • Customer due diligence measures
  • Record-keeping practices

Money Laundering and Terrorist Financing

Monaco received a “partially compliant” rating for its laws and regulations regarding money laundering, terrorist financing, and proliferation finance. The report recommends that the country strengthen its legal framework to better address these issues.

Suspicious Transaction Reports

In terms of statistics, Monaco reported 22 suspicious transaction reports (STRs) in 2020, with an average reporting rate of 15%. However, the report notes that there is a need for more detailed data on STRs and their follow-up investigations.

International Cooperation

The evaluation also highlighted areas where Monaco needs to improve its international cooperation. For instance:

  • The country received a “partially compliant” rating for its mutual legal assistance and extradition practices.

Conclusion

Overall, while Monaco has made progress in implementing AML/CFT measures, there are still areas that require improvement. The country’s financial authorities will need to work closely with other stakeholders to address these issues and maintain its reputation as a secure and transparent financial hub.