Monaco’s Real Estate Professionals: Frontline Soldiers in Monaco’s Battle Against Financial Crimes

In the glamorous Principality of Monaco, located along the French Riviera, lies an unyielding commitment to combating financial crimes. Known as a modern and attractive banking hub, Monaco has been aggressively pursuing a policy against money laundering, terrorist financing, and corruption since 1993.

Legal Framework and Oversight

Monaco’s legal framework, as outlined in Law no.1.362 of August 3rd, 2009, and reinforced by Law no.1.503 of December 23rd, 2020, serves as a robust foundation in the fight against financial crimes. This legislation has evolved to reflect international best practices and is enforced by SICCFIN, Monaco’s national counterpart to the French TRACFIN.

SICCFIN’s Role and Responsibilities

SICCFIN plays a pivotal role in assessing suspicious transactions and is mandated to oversee professionals subject to the law, including real estate agents, agencies, and property dealers. Identified as being particularly susceptible to threat and vulnerability, these sectors are outlined in Article 1 of Monaco’s laws in paragraphs 10 and 11. SICCFIN undergoes regular evaluations by Moneyval, a Council of Europe body, to ensure compliance with international standards combating money laundering and terrorist financing.

Due Diligence for Real Estate Professionals

For real estate professionals, this translates to a rigorous duty of vigilance and due diligence. When facilitating a property transaction involving a purchase or sale, or a high-value rental, these professionals are required to obtain essential documents and information from their clients and potential beneficiaries.

Identifying Clients and Beneficiaries

Professionals must unveil their clients’ identities and decipher the purpose, nature, and origin of the assets, funds, and transactions at hand. They must pay close attention to the nature of their clients and the legal form of their clients’entities.

Controlling Offshore Companies

Proper controls must be exercised over offshore companies or entities based in tax-advantaged countries. Adequate due diligence measures vary depending on the nature and complexity of the transaction, third-party involvement, high-risk clients, or transactions with clients from “risky” countries.

Consequences of Non-Compliance

The consequences of failing to comply with these obligations can be severe. From administrative penalties such as reprimands, financial fines, and license restrictions to criminal sanctions such as imprisonment and substantial fines, professionals who disregard their professional obligations in relation to ill-gotten assets face serious consequences under Monegasque law.

Monegasque Trailblazer Against Financial Crimes

The Principality of Monaco remains steadfast in its role as a trailblazer in the global fight against financial crimes, offering protection to local and international investors by upholding stringent due diligence measures.

Valeri Agency’s Commitment to Regulatory Compliance

At Valeri Agency, our team remains diligent in keeping abreast of these evolving regulations to ensure smooth and secure real estate transactions for our clients. We take pride in providing peace of mind throughout the entirety of the business relationship.

Stay informed about the latest obligations and practices by visiting SICCFIN’s website at https://www.siccfin.mc/en.

For more information, please visit Valeri Agency or contact us at info@valeriamonaco.com.