Financial Crime World

MONACO URGED TO STRENGTHEN FIGHT AGAINST FINANCIAL CRIME

The Council of Europe’s anti-money laundering body, MONEYVAL, has called on Monaco to step up its efforts to combat money laundering and financing of terrorism. In a recent report, MONEYVAL highlighted several areas where the country needs to improve.

Areas for Improvement

  • Investigation and Prosecution: MONEYVAL urged Monaco to strengthen its investigation and prosecution of financial crimes.
  • Supervision of Financial Institutions: The country was criticized for its limited ability to supervise financial institutions effectively.
  • Confiscation of Proceeds of Crime: MONEYVAL expressed concerns about Monaco’s inability to confiscate and recover the proceeds of crime.
  • Beneficial Ownership Information: The report highlighted a lack of transparency regarding beneficial ownership information.
  • Private Sector Compliance: The private sector was criticized for its poor Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) compliance culture.

Deficiencies Identified

  • Risk Understanding and Supervision: MONEYVAL noted that deficiencies in risk understanding and supervision have undermined the authorities’ capacity to apply tailored measures for certain financial institutions.
  • Limited Sanctions: The report highlighted limited sanctions for failure to comply with anti-money laundering regulations.
  • Financial Intelligence Unit: While the country’s financial intelligence unit has produced high-quality analysis, it is not fully used by investigative authorities.

Recommendations

MONEYVAL has recommended that Monaco:

  • Improve its investigation and prosecution of financial crimes
  • Enhance its supervisory system to ensure effective risk assessment and monitoring
  • Increase transparency regarding beneficial ownership information
  • Strengthen sanctions for failure to comply with anti-money laundering regulations
  • Improve the use of financial intelligence analysis by investigative authorities

Next Steps

Monaco has been invited to report back to MONEYVAL by December 2024 as part of its enhanced follow-up procedure.