Financial Crime World

Monaco’s War Against Financial Crime: A Look at the Principality’s Proactive Legislation and Institutions

Monaco, known for its iconic casinos and luxurious lifestyle, is also synonymous with a commitment to combating financial crime. On November 6, 2018, AMAF (Association Monégasque des Activités Financières) hosted Monaco’s Director of Judicial Services, Mr. Laurent Anselmi, for a lunch conference on financial crime prevention methods.

The Challenge of Defining Financial Crime

Mr. Anselmi began by acknowledging the complex nature of defining financial crime, which can take various forms, such as:

  1. International capital movements
  2. Misappropriation of funds
  3. Infringements in tendering processes

The purpose of financial crime can range from purely lucrative aims to financing terrorist activities.

Monaco’s Legislative Evolutions against Financial Crime

Monaco has a long history of legislative efforts to address financial crime:

Prince Rainier III’s Initiatives

  • Law of 8 January 1990 on mutual funds
  • Law of 26 July 1991 concerning the carrying out of certain economic and legal activities
  • Law of 7 July 1993 creating a money laundering offence in the criminal code and amending the criminal procedure code
  • Law of 9 July 1997 relating to portfolio management and related stock market activities

Prince Albert II’s Focus on Regulatory Oversight

  • First money laundering law in 2009
  • Second money laundering law in 2018 in line with European directives

These legislations led to the creation of:

  1. An independent administrative authority, Commission de Contrôle des Activités Financières (C.C.A.F.), to supervise financial activities
  2. A financial intelligence unit, Service d’Information et de Contrôle sur les Circuits Financiers (S.I.C.C.F.I.N.), responsible for collecting, analyzing, and reporting relevant information to the judicial authorities

The Duality of Financial Crime Penalties

Mr. Anselmi highlighted the dual nature of financial crime penalties, which can assume both criminal and administrative natures. Reporting economic and financial offenses makes up 41% of total criminal cases in Monaco, emphasizing the importance of having the legal instruments to adapt to ever-evolving illegal practices.

Collaborating for Comprehensive Research on Financial Crime and Monegasque Law

Monaco’s judicial and administrative authorities plan to collaborate with the Law Faculty in Nice for comprehensive research on financial crime and Monegasque law. This collaboration signifies a significant commitment to strengthen Monaco’s ongoing war against financial crime, a pressing concern for Monaco and the international community.

  1. Comprehensive research on financial crime and Monegasque law
  2. Significant commitment to strengthen Monaco’s war against financial crime
  3. A pressing concern for Monaco and the international community