Financial Crime World

Monaco Tightens AML Regulations to Meet Highest International Standards

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The Principality of Monaco has recently strengthened its legal instruments to combat money laundering as part of its fifth evaluation cycle by the MONEYVAL Committee. On November 30th, 2022, the National Council adopted three new laws aimed at transposing European Union directives and responding to international recommendations.

New Laws Address International Recommendations

The three new laws aim to:

  • Transpose EU Directives: Law No. 1.535 on seizure and confiscation of instrumentalities and proceeds of crime transposes into domestic law the provisions of EU Directive 2014/42/EU on freezing and confiscation of instrumentalities and proceeds of crime in the European Union.
  • Address MONEYVAL Committee Observations: The same law addresses MONEYVAL Committee observations and FATF recommendations regarding Monaco’s anti-money laundering and counter-terrorism financing system.
  • Regulate International Judicial Assistance: Law No. 1.536 amending Title XI of Book IV of the Code of Criminal Procedure formalizes procedures for requesting international judicial assistance, clarifies treatment of foreign requests issued for political purposes or not complying with human rights principles, and regulates seizure measures taken pursuant to such requests.
  • Expand AML Regulations to Domiciliation Activities: Law No. 1.537 supplements Law No. 1.362 of August 3rd, 2009 on the fight against money laundering, terrorist financing, and corruption by specifying that professionals carrying out domiciliation activities are subject to AML regulations.

Commitment to Meeting International Standards

The new legislation came into force on December 17th, 2022, and represents a significant step forward in anti-money laundering control, reflecting Monaco’s commitment to meeting the highest international standards. With these new laws, Monaco demonstrates its dedication to maintaining a robust anti-money laundering system and ensuring transparency in financial transactions.

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GORDON S. BLAIR, an expert in compliance monitoring procedures, is available to assist clients with these matters.