Financial Crime World

MONACO URGED TO BOOST ANTI-MONEY LAUNDERING EFFORTS

Strasbourg, January 23, 2023 - MONEYVAL Calls for Strengthened Measures Against Money Laundering and Terrorism Financing

The Council of Europe’s anti-money laundering body, MONEYVAL, has issued a report urging Monaco to enhance its efforts to combat money laundering and the financing of terrorism. The report highlights several areas where improvement is needed, including supervision systems, investigation and prosecution of money laundering cases, confiscation and recovery of criminal proceeds, risk understanding, international cooperation, and private sector compliance.

Major Shortcomings Identified

  • Supervision System: MONEYVAL expresses concerns over Monaco’s deficient supervisory system, particularly in relation to beneficial ownership checks and risk understanding.
  • Investigation and Prosecution: The report notes that the country has achieved a low number of convictions in money laundering cases, as well as a lack of confiscation measures ordered.
  • Risk Understanding: MONEYVAL highlights major shortcomings in Monaco’s risk understanding, including limited analysis to understand the threat environment and improve risk assessment.
  • Private Sector Compliance: The report criticizes the country’s private sector for having a poorer anti-money laundering compliance culture, with limited suspicious transaction reports filed by casinos and jewelers.

Recommendations

To address these shortcomings, MONEYVAL urges Monaco to:

  • Enhance its efforts to identify and prioritize money laundering cases
  • Seize and confiscate proceeds of crime
  • Recover assets held by third parties
  • Improve international cooperation, particularly in relation to mutual legal assistance and extradition requests
  • Implement proportionate and targeted supervision measures for non-profit organizations

Next Steps

Based on the report’s findings, MONEYVAL has decided to apply its enhanced follow-up procedure and invited Monaco to report back in December 2024.

This report serves as a reminder of the importance of effective anti-money laundering measures to prevent financial crimes and protect the integrity of the global financial system.