Financial Crime World

MONACO URGED TO IMPROVE FIGHT AGAINST MONEY LAUNDERING

Strasbourg, January 23, 2023

The Council of Europe’s anti-money laundering body, MONEYVAL, has issued a report calling on Monaco to strengthen its efforts to combat money laundering and the financing of terrorism. While Monaco has made some progress in understanding the risks associated with these crimes, significant improvements are needed to ensure effective prevention and prosecution.

Key Findings

  • Supervisory System: MONEYVAL highlights the need for a strengthened supervisory system to prevent money laundering and terrorist financing.
  • Investigation and Prosecution: The report notes that Monaco’s prosecutors do not appear consistent with the country’s risk profile, with few convictions achieved and even fewer confiscation measures ordered.
  • Confiscation and Recovery: MONEYVAL expresses concerns about the limited ability to confiscate and recover proceeds of crime in Monaco.

Concerns and Recommendations

  • Financial Intelligence Unit: The report notes that SICCFIN produces high-quality analysis, but lacks human and technical resources.
  • Private Sector Compliance: MONEYVAL finds a poor compliance culture among obliged entities, with many failing to implement adequate anti-money laundering measures.
  • Transparency in Legal Persons: The lack of transparency in legal persons, particularly regarding beneficial ownership information, is a concern.
  • Sanctions for Non-Compliance: Sanctions for failure to comply with anti-money laundering obligations are limited, not proportionate, and rarely imposed.

Positive Developments

  • United Nations Sanctions: Monaco has reformed its framework to implement United Nations sanctions related to terrorist financing and proliferation financing.
  • Suspicious Transaction Reports: Suspicious transaction reports from the banking sector were deemed satisfactory, but those from casinos and jewellers were limited.

Next Steps

MONEYVAL invites Monaco to report back by December 2024 on its progress in addressing these concerns. The country is urged to fundamentally improve its supervisory system, enhance efforts to identify and prioritize money laundering cases, and strengthen international cooperation.