Financial Crime World

Monaco Adopts Risk-Based Approach to Anti-Money Laundering (AML) Fight

In a significant move to strengthen its fight against money laundering, terrorist financing, and corruption, Monaco has adopted a risk-based approach to anti-money laundering (AML). This development was announced at an update meeting on the National Risk Assessment (NRA2) held recently at the Grimaldi Forum.

National Risk Assessment (NRA2)

The NRA2 is a critical component of Monaco’s efforts to comply with international standards set by the Financial Action Task Force (FATF) and European Union directives. The FATF requires countries to identify, assess, and understand the AML/CFT risks they face and adapt their systems accordingly.

Risk-Based Approach

According to Michel Hunault, Director of SICCFIN and head of the Monegasque delegation to the MONEYVAL committee, the risk-based approach is a central element of the FATF standards. “When the risks of money laundering and the financing of terrorism are properly understood, national authorities can then apply AML/CFT measures in line with these risks,” he emphasized.

Key Takeaways

  • The risk-based approach is a key component of the FATF standards.
  • Monaco’s efforts to comply with international standards aim to strengthen its fight against money laundering, terrorist financing, and corruption.
  • The NRA2 brings together representatives from both the public and private sectors, as well as key leaders from Monaco’s economic forces.

Meeting Highlights

The meeting was attended by: + Minister of Finance and Economy Jean Castellini + President of the National Council Stéphane Valeri + Secretary of Justice Robert Gelli + Other prominent officials

In his address, Hunault highlighted the importance of involving all players in the Monegasque economy in meeting international standards. He noted that the update was also an opportunity to recall that the NRA will be followed by the dissemination of guidelines and practical guides, which are eagerly awaited by professionals.

Private Sector Commitment

Representatives from the private sector emphasized their full commitment alongside public authorities within the framework of the NRA2 and preparation for the MONEYVAL committee’s assessment. The outcome of the NRA2 is expected to be one of the key elements assessed by MONEYVAL evaluators.