Financial Crime World

Title: Monaco Urged to Enhance Anti-Money Laundering Measures by MONEYVAL

Monaco Encouraged to Bolster AML/CFT Efforts

Strasbourg, 23rd January 2023 – Monaco has received recommendations from the Council of Europe’s anti-money laundering body, MONEYVAL, to strengthen its measures to combat money laundering (ML) and terrorism financing (TF).

MONEYVAL Report Highlights Medium Risk for Monaco

According to the report, Monaco’s financial sector carries a medium risk for ML and TF. However, the risks could be higher due to the country’s reputation as a tax haven and an attractive financial center.

  1. Key Areas for Improvement

MONEYVAL identified several areas where Monaco needs improvement:

Investigations

Monaco should:

  • Enhance its Financial Intelligence Unit’s (FIU) analytical capabilities
  • Identify and probe ML and TF cases more effectively

Prosecutions

The country needs to:

  • Boost its capacity to prosecute ML cases
  • Increase the number of specialized prosecutors and investigators

Confiscation and Recovery

Monaco should improve its methods to:

  • Confiscate and recover ML proceeds
  • Utilize international cooperation and asset freezing when necessary

International Cooperation

Monaco should:

  • Collaborate more closely with foreign FIUs
  • Enhance information exchange and cross-border ML investigations

Recommendations from MONEYVAL

At a press conference, Martina Palazzi, the head of MONEYVAL, stated that Monaco has shown significant political commitment to combating ML and TF. However, she emphasized the need for the country to take the following steps:

  1. Strengthening the framework
  2. Enhancing investigative capacities
  3. Improving international cooperation

Initial Steps Taken by Monaco

Monaco has already taken initial steps to address the MONEYVAL recommendations. In 2022, Monaco enacted new ML regulations and established a National Risk Assessment team to better understand and assess the country’s ML and TF risks. Additionally, the Monaco Financial Investigation Unit (UFE) has signed MOUs with various foreign FIUs to enhance international collaboration.

Access the Complete MONEYVAL Report

You can access the complete MONEYVAL report, including recommendations and assessments, on the Council of Europe’s website.