Monaco Faces Intensified Scrutiny from Moneyval: Addressing Money Laundering and Ethics Concerns

Monaco, the prestigious Principality located in the French Riviera, is under increased scrutiny from Europe’s anti-money laundering body, Moneyval, for its progress in combating money laundering (ML) and financing of terrorism (FT).

Moneyval’s Report and Recommendations

• Moneyval’s call for stronger actions against ML and FT (January 23, 2023)
• Principality’s government pledges support but must step up efforts
• Acknowledged work identifying risks in various sectors
• Areas of concern: investigating and prosecuting ML, confiscation and recovery, supervisory system
• Inadequate progress in investigating ML
• Insufficient convictions and confiscation measures
• Unaddressed risks in sectors: casinos, company services providers, trusts, virtual assets
• Key role of SICCFIN: Monegasque Financial Intelligence Unit

Key Concerns and Recommendations

• Prioritize ML cases
• Seize, confiscate, and recover proceeds of ML and predicate offenses
• Implement dissuasive ML sanctions for non-profits
• Fewer reports from casinos and jewellers, despite significant roles

Progress and Regulatory Measures

• Recent legislative steps: international mutual legal assistance, seizure and confiscation of instruments, and proceeds of crime
• Monitoring Committee established to oversee implementation
• Previous criticisms and reforms: Russia-Ukraine conflict, legal system

Monaco now faces heightened international scrutiny through a 12-month monitoring period (from the report’s publication) to ensure it complies with the highest international standards in the fight against money laundering and financing terrorism. Stay tuned for updates.

Photo Sources

Image by Monaco Life (for illustration purposes).