Financial Crime World

MONACO: FATF Recommendations 2022 Show Mixed Results

The Financial Action Task Force (FATF) has released its latest assessment of Monaco’s compliance with its anti-money laundering and combating the financing of terrorism (AML/CFT) recommendations. The report presents a mixed picture, showcasing areas of strength and others where improvement is necessary.

Technical Compliance

Monaco received a rating of “Largely Compliant” for several key areas:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offense
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Financial intelligence units

Areas for Improvement

Monaco fell short in other areas, receiving ratings of “Partially Compliant” for:

  • Money or value transfer services
  • New technologies
  • Wire transfers
  • DNFBPs: customer due diligence

Additionally, Monaco received a rating of “Non-Compliant” for transparency and beneficial ownership of legal persons and arrangements.

Areas of Strength

Monaco was given a rating of “Compliant” in the following areas:

  • Financial institution secrecy laws
  • Customer due diligence
  • Internal controls and foreign branches and subsidiaries
  • Regulation and supervision of financial institutions
  • Powers of supervisors
  • Responsibilities of law enforcement and investigative authorities

Progress and Recommendations

The FATF report notes that Monaco has made some progress in recent years, but more work is needed to address the remaining deficiencies. The country’s authorities are urged to take immediate action to implement necessary reforms and strengthen its AML/CFT framework.

In related news, Monaco’s Benin Follow-Up Report 2023 highlights the country’s progress in addressing recommendations from the previous year. However, more work is still needed in several areas, including:

  • National cooperation and coordination
  • Money laundering offense
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing
  • DNFBPs: other measures

Conclusion

The FATF report emphasizes the importance of continued vigilance and efforts by Monaco’s authorities to strengthen its AML/CFT framework and address the remaining deficiencies.