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Monaco’s Banking Industry Whistleblower Laws: Protection and Obligations

In the aftermath of the global financial crisis, Monaco has taken significant steps to strengthen its anti-money laundering laws and protect whistleblowers who report suspicious financial activities. As part of these efforts, Law n°1.362 of 3 August 2009 imposes obligations on employers in the banking industry to implement procedures for reporting deficiencies or breaches related to money laundering, terrorist financing, and corruption.

Obligations of Employers

Under the law, employers must establish procedures that allow directors and employees to report suspected financial irregularities to a designated person, their direct supervisor, or the employer itself. These procedures must guarantee confidentiality and provide for the possibility of external reporting to:

  • The Service d’Information et de Contrôle sur les Circuits Financiers
  • The Public Prosecutor
  • The President of the Bar Association

Protection of Whistleblowers

Whistleblowers in Monaco’s banking industry are protected from retaliation by law. No detail that could identify a whistleblower can be disclosed without their consent, and they cannot be held criminally liable for reporting suspected financial irregularities. Additionally, whistleblowers may not face:

  • Exclusion from recruitment procedures
  • Internship opportunities or professional training
  • Dismissal, sanction, or other disadvantageous measures

Controls and Sanctions

The law provides for controls by various authorities, including:

  • The Service d’Information et de Contrôle sur les Circuits Financiers
  • The Public Prosecutor
  • The President of the Bar Association

Where necessary, administrative sanctions, including fines and warnings, may be imposed, as well as financial sanctions capped at:

  • Five million euros
  • Ten percent of a company’s annual turnover

Conclusion

In conclusion, Monaco’s banking industry whistleblower laws aim to promote transparency and accountability in financial transactions. Employers must verify whether the law applies to them and take necessary steps to comply with their obligations, including:

  • Training staff on anti-money laundering legislation and reporting procedures
  • Staying informed about these regulations and the protections they offer to whistleblowers

As the global fight against financial crime continues, it is essential for businesses in Monaco to stay informed about these regulations and the protections they offer to whistleblowers.