Financial Crime World

Monaco Tightens Laws to Combat Money Laundering and Terrorist Financing

The Principality of Monaco has strengthened its laws and regulations to combat organized crime, money laundering, and terrorist financing. This move has been praised by international organizations such as the Financial Action Task Force (FATF), Moneyval (Council of Europe), and the International Monetary Fund (IMF).

Enhancing Financial Intelligence

Monaco’s financial intelligence unit, SICCFIN, has received a significant boost in staffing and resources. The unit has signed agreements with 49 other financial intelligence units and joined the Egmont Group, which comprises 151 global financial intelligence units. This enhanced capacity enables SICCFIN to detect and prevent illegal activities more effectively.

Leadership in Combating Money Laundering and Terrorist Financing

The Sovereign Prince of Monaco has been at the forefront of this drive, emphasizing that the principality must be a leader in combating money laundering and terrorist financing. To achieve this goal, the Monaco Association for Financial Activities (AMAF) has implemented strict industry recommendations similar to those found in major global banking sectors.

Industry Recommendations

These recommendations, first published in 2000 and updated in 2004, outline the obligations and diligence required of Monegasque financial institutions when it comes to:

  • Identifying and knowing their customers
  • Monitoring capital movements

The AMAF has also been instrumental in creating the Association Monégasque des Compliance Officers (AMCO), which brings together compliance officers to share knowledge and best practices in preventing money laundering and terrorist financing.

Strengthening the Financial Sector

As a result of these efforts, Monaco’s financial sector is now better equipped to combat the threat of money laundering and terrorist financing. This makes it an attractive destination for legitimate businesses and individuals.

By strengthening its laws and regulations, Monaco has demonstrated its commitment to combating organized crime and protecting the integrity of its financial system. The principality’s efforts have been recognized by international organizations, making it a leader in this field.