MONACO TIGHTENS AML/CFT REGULATIONS FOR FINTECH COMPANIES

The National Council of Monaco has adopted Law No. 1.503 on Money Laundering, Anti-Corruption and Terrorism Financing, strengthening the principality’s fight against illicit activities.

ENACTMENT AND BACKGROUND

Enacted on December 23, 2020, the new law strengthens Monaco’s legal framework against money laundering and corruption, amending previous legislation dating back to 2009. The regulation also comes as a response to the Fifth European Anti-Money Laundering Directive, which Monaco was required to translate into domestic law by December 31, 2020.

KEY PROVISIONS OF THE NEW LAW

• Prevention and Detection of Money Laundering: Measures are aimed at preventing and detecting money laundering, including enhanced due diligence procedures.
• Countering Terrorism Financing: The regulation is designed to counter terrorism financing and maintain Monaco’s reputation as a safe and responsible financial center.

IMPLICATIONS FOR FINTECH COMPANIES

As a result of this new law, fintech companies in Monaco will need to adhere to stricter AML/CFT regulations, including:

• Enhanced Due Diligence Procedures: Fintech companies must conduct thorough due diligence on their clients and partners.
• Reporting Requirements: Companies are required to report suspicious transactions and activities to the relevant authorities.

ENHANCING MONACO’S POSITION AS A FINANCIAL HUB

The new law is intended to enhance Monaco’s position as a financial hub by providing a stronger legal framework for fintech companies operating in the principality.