Financial Crime World

Title: Monaco’s Commitment to Combating Financial Crime: A Response to Moneyval’s Report

Subtitle: Strengthening the Regulatory Framework and Enhancing Anti-Money Laundering Measures in Monaco

/Introduction/

Monaco, known for its glamour and luxury, has faced criticism over its perceived lax approach to financial crime. In a damning report by the Council of Europe’s Moneyval committee, Monaco was criticized for inadequate measures to combat money laundering and terrorist financing (Monaco Life, 2023). In response, Monaco’s Prince’s Government has declared its commitment to taking concrete steps to address these concerns and strengthen its regulatory framework.

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Moneyval’s Critique

Last week, Moneyval, an anti-money laundering watchdog, criticized Monaco for insufficient efforts to:

  • Investigate and prosecute money laundering cases
  • Confiscate proceeds of crime
  • Strenghen its supervisory system (Monaco Life, 2023)

The report indicated that Monaco would remain on Moneyval’s list of countries with strategic deficiencies in their anti-money laundering systems.

Government’s Response

In response to the report, Monaco’s Government announced its intent to address the deficiencies identified (Monaco Life, 2023). The announcement came after a High-Level Political Forum on Anti-Corruption, held in the principality on January 17 (Monaco Today, 2023). Top officials from various international organizations, including the UN Office on Drugs and Crime, the European Union, and the FATF, emphasized the need for Monaco to reinforce its commitment to combatting financial crime.

Planned Measures

The Government’s statement pledged its “full support” for Moneyval’s recommendations, including:

  • The appointment of additional staff to the Financial Information and Procedures Commission (SICCFIN)
  • Enhancing cooperation with neighboring European countries to exchange information on financial crimes
  • Improving financial crime reporting
  • Increasing transparency in Monaco’s business dealings

Transparency and Efficiency

Monaco’s Minister of State, Marie-Pierre Gramaglia, stated that these measures would be pursued in a transparent and efficient manner to boost public trust in the principality’s financial sector (Monaco Today, 2023). Monaco’s acknowledgement of the shortcomings in its anti-money laundering framework is a significant step towards addressing concerns over its reputation as a tax haven and a potential safe haven for illicit funds.

Conclusion

Monaco’s commitment to addressing the weaknesses identified in the Moneyval report is vital to restoring confidence in the principality’s financial integrity. By implementing stricter regulations and increasing cooperation with international partners, Monaco positions itself to become a leading jurisdiction in combatting financial crime and maintaining its standing as a premier destination for businesses and tourists alike.

References

Monaco Life. (2023). Moneyval Criticises Monaco Over Anti-Money Laundering. Retrieved from https://monaco-life.com/news/moneyval-criticises-monaco-over-anti-money-laundering

Monaco Today. (2023). Monaco’s Minister of State: “The Principality Will Pursue Measures to Combat Money Laundering and Terrorist Financing in a Transparent and Efficient Manner” Retrieved from https://www.monaco-today.mc/2023/01/20/monacos-minister-of-state-the-principality-will-pursue-measures-to-combat-money-laundering-and-terrorist-financing-in-a-transparent-and-efficient-manner/62313/