Monaco Urged to Step Up Efforts on Money Laundering Probes, Confiscations and Supervision
The Council of Europe’s anti-money laundering body MONEYVAL has published a report calling on Monaco to strengthen its efforts in investigating and prosecuting money laundering cases, confiscating and recovering proceeds of crime, as well as improving its supervisory system.
Progress Made, but Significant Improvements Needed
MONEYVAL acknowledged that Monaco had made progress in understanding its risks related to money laundering and terrorism financing. However, the body noted that significant improvements were needed in several areas, including:
- Transparency of legal persons: Obtaining beneficial ownership information is a critical aspect of preventing money laundering.
- Terrorist financing investigations and prosecutions: Monaco’s efforts in this area need to be strengthened.
- Supervision: The current supervisory system is inadequate, with deficiencies in risk understanding undermining authorities’ capacity to apply tailored supervision for obliged entities.
Major Shortcomings Identified
MONEYVAL highlighted several major shortcomings in Monaco’s anti-money laundering framework, including:
- Dissuasive sanctions: Monaco has not imposed sufficient dissuasive sanctions on entities that fail to comply with anti-money laundering obligations.
- Convictions and confiscation measures: The number of convictions achieved in money laundering cases is low, and the limited confiscation measures ordered are a concern.
- Private sector compliance culture: There is a lack of compliance culture among designated non-financial businesses and professions.
Recommendations for Improvement
MONEYVAL has invited Monaco to report back on progress by December 2024. To combat money laundering and terrorism financing effectively, the body recommends that Monaco:
- Fundamentally improve its supervisory system
- Enhance efforts in investigating and prosecuting money laundering cases
- Increase the effectiveness of confiscation measures
Closely Monitoring Progress
MONEYVAL will closely monitor Monaco’s progress in implementing these recommendations and provide further guidance as needed. The body aims to strengthen Monaco’s efforts to prevent and combat money laundering and terrorism financing, essential for maintaining a stable and secure financial system.
The Council of Europe’s anti-money laundering body MONEYVAL has called on Monaco to strengthen its efforts in investigating and prosecuting money laundering cases, confiscating and recovering proceeds of crime, as well as improving its supervisory system.