Monaco’s New Task Force Tackles Financial Crime: A Response to Moneyval’s Critique

Monaco, under the international spotlight for its financial practices, has taken bold steps to strengthen its fight against money laundering, terrorist financing, and the proliferation of weapons of mass destruction. In response to a scathing report from Moneyval, the Council of Europe’s anti-money-laundering body, Monaco established a new supervisory committee to oversee the implementation of Moneyval’s recommendations.

Monaco’s New Committee: The Commission interministérielle de contrôle et de coordination (IMCC)

Established on 1st February 2022 following the signing of Sovereign Ordinance No. 9.729, the IMCC is Monaco’s new central coordination and monitoring mechanism for all matters concerning the prevention and combating of financial crimes. The committee’s primary mission includes:

1. Developing and monitoring the implementation of a comprehensive national strategy and action plan: The IMCC will oversee the development and implementation of Monaco’s strategy for combating financial crimes.
2. Gathering and analyzing relevant information and statistics: The committee will collect and analyze information and statistics from competent authorities to assess the effectiveness of Monaco’s financial crime system continuously.
3. Examining international treaties and conventions: The IMCC will examine international treaties and conventions on combating financial crimes and recommend their signature and ratification to the government.
4. Coordinating with Monaco’s Advisory Committee on the Freezing of Funds and Economic Resources: The committee will coordinate with Monaco’s Advisory Committee on the Freezing of Funds and Economic Resources to implement international economic sanctions.
5. Submitting annual activity reports: The IMCC will submit an annual activity report on Monaco’s efforts to combat financial crimes to the government and the Directorate of Judicial Services.

Monaco’s Quick Response: A Step Forward in Financial Transparency

The decision to create the IMCC came as a surprise due to the rapid manner in which it was implemented following Moneyval’s evaluation. Monaco’s legislative body, the National Council, expressed concern over the lack of consultation in the process in a communiqué issued on 3rd February. However, despite this, the National Council remains committed to the committee’s overarching goal of combating financial crimes in Monaco. The council has vowed to play its full role within the framework of the committee’s initiatives towards Moneyval’s recommendations.

Monaco’s swift response to Moneyval’s critiques marks an essential step forward in Monaco’s commitment to financial transparency and combating financial crimes. This development underscores the determination of Monaco’s government to take actions that not only meet international standards but also exceed them.

Additional Tasks of the IMCC

1. Strengthening Monaco’s regulatory framework: The IMCC will work towards strengthening Monaco’s regulatory framework to prevent and combat financial crimes effectively.
2. Enhancing international cooperation: The committee will promote international cooperation to improve Monaco’s ability to combat financial crimes.
3. Raising awareness and training: The IMCC will raise awareness and provide training to relevant authorities, financial institutions, and other stakeholders to enhance the effectiveness of Monaco’s financial crime system.
4. Providing technical assistance: The committee will provide technical assistance and guidance to competent authorities and other stakeholders to ensure the effective implementation of Monaco’s financial crime policies and regulations.
5. Updating and improving financial intelligence: The IMCC will update and improve Monaco’s financial intelligence unit (FIU) to ensure the proper monitoring and reporting of suspicious financial transactions.