Financial Crime World

Monaco Urged to Step Up Efforts Against Money Laundering and Terrorism Financing

The Council of Europe’s anti-money laundering body, MONEYVAL, has issued a report urging Monaco to strengthen its measures against money laundering and terrorism financing. The report highlights several areas where the principality requires significant improvements.

Investigation and Prosecution of Money Laundering Cases

  • MONEYVAL notes that while Monaco has made some progress in understanding money laundering risks, it still lacks transparency regarding legal persons.
  • Investigations and prosecutions of terrorism financing cases are inadequate.
  • Limited sanctions for non-compliance with anti-money laundering regulations hinder efforts to combat financial crime.

Confiscation and Recovery of Proceeds from Crime

  • MONEYVAL criticizes the lack of effective confiscation and recovery of proceeds from crime in Monaco.
  • The report highlights the need for improved investigation and prosecution of money laundering cases to ensure successful confiscation and recovery.

Financial Intelligence Unit (SICCFIN)

  • SICCFIN lacks human and technical resources, despite producing high-quality financial intelligence.
  • The analysis is not fully used by investigative authorities, hindering the effective use of financial intelligence in combating money laundering and terrorism financing.

Supervisory System

  • MONEYVAL urges Monaco to improve its supervisory system, citing deficiencies in beneficial ownership checks and risk understanding.
  • The report criticizes the limited sanctions imposed for non-compliance with anti-money laundering regulations.

Private Sector Implementation of Anti-Money Laundering Measures

  • The private sector is found to be lacking in implementing anti-money laundering measures.
  • A high volume of defensive reporting and excessively long transmission times hinder effective monitoring and detection of suspicious transactions.

Progress and Recommendations

  • Monaco has been commended for reforming its framework enabling the implementation of United Nations targeted financial sanctions related to terrorism financing and proliferation financing.
  • However, there have been no prosecutions or convictions for terrorism financing in Monaco, despite gaps in risk analysis.
  • MONEYVAL urges Monaco to enhance its effectiveness in international cooperation, noting systemic obstacles hindering mutual legal assistance and extradition requests.

Next Steps

  • MONEYVAL has invited Monaco to report back on its progress by December 2024.
  • The enhanced follow-up procedure will be applied to monitor Monaco’s compliance with anti-money laundering regulations.