Financial Crime World

Monaco Cracks Down on Financial Crime and Corruption: Princedom Strengthens Anti-Corruption Measures in Compliance with International Standards

Monaco, the glamorous principality, is taking a serious stance against financial crime and corruption with the recent passage of Sovereign Order No. 9.931. Below are the details of this significant legislative development and its aims.

Boosting Monaco’s Anti-Corruption Regulations

Effective June 15, 2023, Sovereign Order No. 9.931 aims to enhance Monaco’s anti-corruption regulations and bring them in line with international standards set by The Group of States against Corruption (GRECO). This move will permit Monaco to meet GRECO’s requirements for preventing corruption and promoting integrity within central governments and law enforcement authorities.

Obligations for Government Officials

Under the new legislation, government officials will now be required to conduct their duties with loyalty, dignity, integrity, selflessness, impartiality, objectivity, and professional discretion. Specific measures include:

  1. Mandatory training on ethical principles and practices
  2. Declaration of assets and interests
  3. Formalizing disqualification and abstention procedures
  4. Reinforcing policies concerning the monitoring and tracking of gifts
  5. Creating an Ethics Committee and appointing a compliance officer
  6. Implementing measures to prevent “pantouflage” – the practice of senior officials transitioning into the private sector after leaving office

These changes build on the system already applied to government members. Further legislation is planned to focus on senior executive positions.

Monaco joined the Council of Europe’s Criminal Law Convention on Corruption in 2007 and has undergone several evaluations by the GRECO since then.

GRECO’s Role in Combating Financial Crime and Corruption

GRECO, founded in 1999 by the Council of Europe, monitors its members’ adherence to anti-corruption standards and encourages needed reforms through a mutual evaluation and pressure process. By sharing best practices in preventing and detecting corruption, GRECO helps its members enhance their capabilities to combat financial crime and corruption.

Upcoming GRECO Evaluation

The GRECO evaluation team is scheduled to visit Monaco during the fifth evaluation round from November 20-24, 2023.

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