Financial Crime World

Banking Compliance Updates 2023: Monaco Adapts to International Regulations

Strengthening Anti-Money Laundering Efforts

The Principality of Monaco has recently implemented a series of legislative updates aimed at harmonizing its laws with European Union directives, further strengthening its anti-money laundering (AML) efforts. These reforms aim to combat money laundering, terrorist financing, and corruption.

Impact on the Monegasque Banking Sector

In 2020, the AML Law was promulgated, incorporating the EU’s fifth AML Directive into Monaco’s legislation. Since then, the country has continued to adapt its laws to international standards, focusing on implementing measures equivalent to those provided for by the EU directive.

Recent Developments

  • Law No. 1,549 (July 2023): Created the Anti-Money Laundering and Sanctions Fund (AMSF) and raised the obligations of individuals subject to due diligence requirements. The law also specified corresponding sanctions for non-compliance.
  • Law No. 1,550 (August 2023): Amended several legislative provisions related to the fight against money laundering, terrorism financing, and weapons proliferation. This law aimed to ensure that elementary information remains up-to-date in registers kept by the Economic Development Department and the Interior Department, while also providing extended access to competent authorities.
  • Law No. 1,553 (December 2023): Strengthens criminal law penalties for money laundering and terrorism financing offenses, while introducing new fines applicable to legal persons. The law aims to enhance the efficiency of criminal proceedings and increase the effectiveness of anti-money laundering measures.

Future Developments

A fourth text is currently being drafted, focusing on professional secrecy for agents of the Tax Services Department and legislation related to trusts.

Monaco’s Commitment to Compliance

Monaco’s commitment to compliance with international standards has been further solidified through its membership in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), which it joined in September 2020. These updates demonstrate Monaco’s continued efforts to adapt to changing international regulations, ensuring a robust anti-money laundering framework that protects the country’s financial system and reinforces its commitment to sustainable development.