Here is the rewritten article in Markdown format:

Financial Crimes in Monaco Exposed: Country at Risk of “Grey-Listing”

A recent report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has highlighted significant vulnerabilities in Monaco’s measures against money laundering, putting the country under intense scrutiny from the international Financial Action Task Force (FATF) watchdog.

Money Laundering Risks

The report reveals that Monaco faces substantial money laundering risks due to its internationally oriented financial activities and its status as a prime target for illicit cross-border financial flows. In most cases, frauds are committed abroad, with the proceeds of crime laundered in Monaco.

Structural Deficiencies

The report also found that risk analyses, international cooperation, and the dissuasiveness of sanctions are not fully effective in combating fraud and corruption risks, particularly regarding income tax evasion and terrorist financing.

One-Year Observation Phase

Monaco is set to enter a one-year observation phase after the report goes to FATF plenary on February 20. Should structural reforms not be implemented during this period, the country risks being named and shamed in a public “grey list”.

Supervision Concerns

The report highlighted concerns over uneven supervision of financial institutions and non-financial businesses such as real estate agents and private banking firms, which face little regulation despite presenting high-risk financial fraud profiles.

Inadequate Prosecutions and Sanctions

In addition, the report noted inadequate money laundering-related prosecutions and sanctions, with many cases failing to be identified by authorities in the first place. The report also criticized the slow pace of investigations, which can last up to 10 years due to insufficient staff numbers and limited investigatory powers.

Government Response

The Monegasque government has pledged to implement the report’s recommendations quickly to align with international standards. However, should Monaco fail to address its structural deficiencies, it risks being “grey-listed” as early as mid-2024, joining countries such as Albania, Barbados, Gibraltar, Morocco, and Panama among others.

Legislative Reforms

The country is currently undergoing legislative reforms since April 2022 to tackle the report’s priority concerns, particularly in the non-financial business space.