Financial Crime World

Monaco Takes a Stand Against Financial Crimes: Strong Regulations and Cooperation with International Partners

Combating Money Laundering and Terrorist Financing

In its ongoing efforts to combat money laundering and terrorist financing, Monaco has been at the forefront of international best practices. The principality’s strong regulatory framework is designed to prevent and detect suspicious financial activities, in line with recommendations from the Financial Action Task Force (FATF).

Monaco’s legal mechanism for combating money laundering and terrorist financing was overhauled with the introduction of Act No. 1.362 in August 2009. This act brought together previously scattered provisions into a single piece of legislation, ensuring that Monaco’s laws were updated to comply with FATF standards.

Implementing the Mechanism

To implement this mechanism, Monaco has established the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), a financial investigation unit with broad investigative powers. SICCFIN’s primary roles include:

  • Analyzing and processing declarations of suspicious transactions by professionals subject to the anti-money laundering law
  • Conducting on-site visits to ensure compliance with legal obligations

International Cooperation

Monaco has been an active participant in international efforts to combat money laundering and terrorist financing, joining the Council of Europe in 2004. The country regularly participates in the MONEYVAL Experts’ Committee, which ensures that member states have implemented effective systems to counter these crimes and comply with international standards.

In addition, SICCFIN is a member of the Egmont Group, an international organization comprising more than 140 countries’ financial intelligence units. Monaco has also signed 43 administrative cooperation agreements with foreign counterparts, facilitating information sharing and cooperation in combating financial crimes.

Conclusion

Through its legislative reforms and international commitments, the Monaco government aims to guarantee a high level of legal security for monetary and financial transactions, making it an attractive destination for international banking and finance.