Financial Crime World

Monaco’s Real Estate Professionals: Fighting Financial Crimes with Vigilance and Transparency

Monaco, known for its glamour and exclusive lifestyle, has taken an active stance against financial crimes. With a modern and attractive banking sector, Monaco aims to ensure legal security for monetary and financial transactions and meet international standards. This article will discuss how Monaco’s real estate professionals are contributing to this initiative.

The Principality of Monaco’s legal framework against financial crimes has evolved over the years. From Law no.1.362 of August 3rd, 2009, to the recent amendments in Law no. 1.503 of December 23rd, 2020, Monaco’s laws have become more stringent to combat money laundering, terrorist financing, and corruption.

Enforcing these laws is SICCFIN, Monaco’s counterpart to the French TRACFIN. SICCFIN gathers, analyzes, and processes suspicious transaction reports from professionals, including real estate agents and property dealers.

Increased Focus on Transparency

The real estate sector’s increased focus on transparency is due to its increased risk and vulnerability. SICCFIN, overseen by Moneyval, a Council of Europe organization, conducts regular checks on companies to ensure proper implementation of Monegasque legislation.

Duty of Vigilance

For property sale or rental transactions above €10,000 a month, Monegasque real estate professionals are required to implement a duty of vigilance. This includes collecting and verifying identification documents from clients and beneficial owners.

Identification of Beneficial Owners

The beneficial owner is the natural person who holds the majority of the capital, voting rights, or has control (direct or indirect) of the client or the transaction. Professionals must adapt their vigilance measures concerning the business relationship’s risk level, transaction complexity, or client’s nationality or public functions.

Consequences of Non-Compliance

Failure to maintain these obligations may result in administrative and criminal sanctions. These sanctions include reprimands, financial penalties, licensing restrictions, or even imprisonment and fines.

Monaco’s Commitment to Combating Financial Crimes

Monaco’s commitment to combating financial crimes supports its reputation for economic reliability and attractiveness. Valeri Agency, a leading real estate agency in Monaco, prioritizes remaining informed of the latest vigilance and transparency regulations. Our internal procedures are regularly updated, and comprehensive trainings are provided to our staff to ensure the highest level of service for our clients.

More Information

For more information on these regulations and SICCFIN, please visit SICCFIN’s website.