Monaco Takes Action to Combat Money Laundering and Terrorist Financing
Introduction
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, known as Moneyval, has released its latest report on Monaco’s efforts to combat money laundering and terrorist financing. The report highlights significant money laundering risks facing the Principality due to its internationally oriented financial activities.
Vulnerabilities Identified
Moneyval has identified certain vulnerabilities in Monaco’s measures to combat money laundering, including:
- A potential prime target for illicit cross-border financial flows
- Criminals using Monaco as a hub to launder their ill-gotten gains
- Modest number of money laundering investigations and convictions obtained
- Lack of transparency regarding legal persons, investigation, and prosecution regarding financing of terrorism
Recommendations and Response
In response to the report, Moneyval has given Monaco until March 2024 to resolve the identified strategic deficiencies. The Government of Monaco has expressed its full support for the recommendations made in the Moneyval report and has taken immediate measures to comply with best international standards.
Some of the steps taken by Monaco include:
- Creating a register of beneficial owners
- Creating a register of trusts
- Deploying a risk-based approach tool called STRIX
- Passing five pieces of legislation aimed at strengthening anti-money laundering measures
Follow-up and Progress Review
The private sector is also mobilized to preserve the attractiveness of the Principality, which includes implementing the actions recommended by the Moneyval report. A substantial budget has been allocated for the recruitment of experts, and a follow-up committee has been created responsible for adopting the recommendations.
Moneyval will review Monaco’s progress again in December 2024. For now, the Principality is committed to quickly resolving its identified deficiencies and preserving its excellent reputation on the OECD’s “white list” since 2009.
Conclusion
Monaco is taking concrete steps to address the vulnerabilities identified by Moneyval and ensure that it remains a responsible player in the global financial system. The Government of Monaco is committed to implementing the recommendations made in the report and maintaining its strong anti-money laundering and anti-terrorist financing regime.