MONACO TIGHTENS AML/KYC REGULATIONS TO COMBAT MONEY LAUNDERING AND TERRORISM FINANCING

Strengthening Monaco’s Anti-Money Laundering Framework

The National Council of Monaco has adopted a new law, number 1.503, aimed at strengthening the principality’s legal framework against money laundering, corruption, and terrorism financing. This legislation was approved on December 23, 2020, and is set to come into effect immediately.

Aligning with European Anti-Money Laundering Regulations

The new legislation brings Monaco in line with European anti-money laundering (AML) regulations, specifically the 5th directive of May 30, 2018. The transposition deadline for the EU directive was December 31, 2020, and Monaco has opted to introduce domestic laws that mirror these international standards.

Key Provisions of the New Law

• Entities such as banks, insurance companies, and other financial institutions will be subject to enhanced AML/KYC (Know Your Customer) regulations.
• These requirements are aimed at ensuring that these organizations carry out rigorous customer due diligence and monitoring procedures.
• The law emphasizes the importance of transparency and accountability in the fight against financial crimes.

Impact on Businesses Operating in Monaco

The adoption of law number 1.503 is expected to have a significant impact on businesses operating in Monaco, particularly those in the financial sector. As of now, these organizations will need to comply with enhanced AML/KYC regulations to maintain their reputation and avoid any potential risks associated with non-compliance.

Industry Experts’ Response

Industry experts believe that the adoption of law number 1.503 will help reinforce Monaco’s reputation as a trusted and secure financial hub. As the principality continues to evolve and strengthen its regulatory framework, businesses and individuals can expect increased scrutiny on AML/KYC compliance.