Monaco Slips onto Grey List for Money Laundering Concerns Despite Efforts to Improve
On June 28, the Financial Action Task Force (FATF) announced that Monaco has been added to the grey list, a designation reserved for countries with “strategic deficiencies” in their anti-money laundering efforts. This move raises concerns about the principality’s commitment to combating money laundering.
Deficiencies in Anti-Money Laundering Regime
Despite Monaco’s efforts to improve its anti-money laundering regime following a series of unverified claims against figures close to Prince Albert II, the country failed to adequately address concerns raised by the Council of Europe’s anti-money laundering body, Moneyval. The FATF cited deficiencies in Monaco’s ability to prevent money laundering from fraud committed abroad and insufficient penalties for those found guilty of such crimes.
Efforts to Improve Regime
The principality has taken steps to address these concerns, including adopting nine new laws aimed at strengthening its anti-money laundering regime. However, local sources have suggested that implementing these measures has been hampered by a lack of qualified staff, leading Monaco to rely on foreign experts who do not meet FATF standards.
Impact on Reputation
Monaco’s inclusion on the grey list is a setback for the country, which had previously been praised for its efforts to combat tax evasion and financial crimes. The principality’s reputation as a haven for the rich and famous has also come under scrutiny in recent years following anonymous denunciations orchestrated by a website accusing several figures close to Prince Albert of being involved in a money laundering scheme.
Removals from Grey List
In related news, Jamaica and Türkiye have been removed from the grey list after eliminating the identified deficiencies in their anti-money laundering efforts. The FATF urged countries to take action against Iran and North Korea, citing concerns about the latter’s “illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing.”
Government Response
Monaco’s government has vowed to continue working to address the FATF’s concerns and get off the grey list. “The principality confirms its determination to implement the latest FATF recommendations set out in the declaration, in accordance with the planned deadlines,” a government spokesperson said.
Global Impact
With 21 countries currently on the grey list, including Mali, Vietnam, and Yemen, Monaco’s inclusion is likely to raise concerns about the effectiveness of its anti-money laundering regime. The principality will need to take swift action to address the FATF’s concerns and regain its reputation as a leader in combating financial crimes.
Key Points
- Monaco has been added to the Financial Action Task Force (FATF) grey list due to “strategic deficiencies” in its anti-money laundering efforts.
- The principality failed to adequately address concerns raised by the Council of Europe’s anti-money laundering body, Moneyval.
- Monaco has adopted nine new laws aimed at strengthening its anti-money laundering regime but faces challenges implementing them due to a lack of qualified staff.
- Jamaica and Türkiye have been removed from the grey list after eliminating identified deficiencies in their anti-money laundering efforts.
- Iran and North Korea are subject to FATF concerns, with the latter’s “illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing” being a major concern.