Financial Crime World

Monaco Urged to Boost Anti-Money Laundering Efforts by Moneyval Committee

Moneyval’s Recommendations for Monaco

In a recent report, the Council of Europe’s anti-money laundering body, Moneyval, recommended that Monaco intensify its efforts against money laundering (ML) and financing of terrorism following a comprehensive assessment conducted in October 2022.

Monaco needs to ________.

  • Strengthen investigations and prosecutions
  • Confiscate and recover proceeds of crime
  • Enhance its supervisory system

Areas for Improvement

The evaluation report, published on January 23, 2023, outlined several areas for improvement:

  • Adequate Penalties: The absence of sufficient penalties for ML and terror financing offenses.
  • Insufficient Resources: An insufficient number of dedicated resources for investigations.
  • Limited Cooperation: Limited cooperation between authorities.

Recommendations from Moneyval

Moneyval encourages Monaco to:

  • Apply FATF Standards: Apply the Financial Action Task Force (FATF) standards more rigorously.
  • Establish a Comprehensive Risk Assessment: Introduce a comprehensive ML/TF risk assessment.
  • Introduce New Measures: Adopt measures such as customer due diligence for complex cases and ongoing monitoring of business relationships.

Enhancing Monaco’s AML/CFT Efforts

To bolster its efforts against financial crimes, Monaco is suggested to:

  • Implement a Risk-Based Approach: Adopt a risk-based approach to ML/TF supervision.
  • More Effective Preventive Measures: Implement more effective preventive measures.
  • Enhance International Cooperation: Enhance international cooperation, particularly in the context of cross-border crimes and suspicious transactions.

Previous Evaluations and Future Monitoring

Monaco has undergone five evaluations of its ML/TF measures since 2010. The previous evaluation was published in 2019. Moneyval will closely monitor Monaco’s progress in addressing the deficiencies identified and reassess its compliance with anti-money laundering and counter-terrorist financing standards.

Monaco’s Commitment

By addressing these concerns, Monaco aims to enhance its international image and position in the global financial community and demonstrate its commitment to combating financial crimes. Monaco joined the Council of Europe in 2004 and signed an agreement with the European Union to enhance its ML/TF surveillance and cooperation with EU member states.