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Monaco’s Financial Institution Security Measures Under Scrutiny

A recent report assessing Monaco’s compliance with global anti-money laundering and combating the financing of terrorism (AML/CFT) standards has revealed some areas for improvement. The report, conducted by the Financial Action Task Force (FATF), evaluates the country’s financial institution security measures against 40 key recommendations.

Key Findings

According to the evaluation, Monaco is largely compliant in several areas, including:

Assessing risk and applying a risk-based approach
National cooperation and coordination
Regulation and supervision of financial institutions

However, there are some notable shortcomings. The report found that Monaco is partially compliant with regards to:

Confiscation and provisional measures
Targeted financial sanctions related to terrorism and terrorist financing
International instruments

Shortcomings and Recommendations

Monaco has been deemed non-compliant in a few areas, including:

Transparency and beneficial ownership of legal persons and arrangements
Regulation and supervision of designated non-financial businesses and professions (DNFBPs)

To strengthen its financial institution security measures, Monaco must implement the following key recommendations:

Improve customer due diligence processes
Enhance record-keeping requirements
Increase transparency in financial transactions

Government Response

Monaco’s authorities have welcomed the evaluation and have committed to addressing the areas identified for improvement. The government has pledged to work closely with international partners to enhance its AML/CFT framework and ensure the integrity of its financial system.

Conclusion

The report is a significant step forward in Monaco’s efforts to maintain its reputation as a stable and secure financial hub. As the country continues to implement the necessary reforms, it is expected to strengthen its position in the global financial landscape.