Monaco Urged to Step Up Efforts Against Financial Crime

Strasbourg, January 23, 2023

The Council of Europe’s anti-money laundering body, MONEYVAL, has issued a stern warning to Monaco, urging the principality to strengthen its efforts to combat money laundering and financing of terrorism. A recent report by MONEYVAL highlights several areas where Monaco needs to improve its approach to tackling financial crime.

Key Findings

• While Monaco has made some progress in understanding the risks associated with financial crime, it still requires improvement in investigating and prosecuting such crimes.
• The country’s supervisory system is deficient in relation to beneficial ownership and fit and proper checks.
• Sanctions for non-compliance with anti-money laundering regulations are limited, not proportionate, and imposed with delays.
• Monaco’s efforts to investigate and prosecute money laundering cases are not consistent with its risk profile, resulting in a low number of convictions achieved.

Recommendations

To address these concerns, MONEYVAL recommends that Monaco:

• Strengthen its supervisory system
• Improve its risk analysis
• Enhance international cooperation
• Utilize the capacity of its Financial Intelligence Unit (SICCFIN) to produce high-quality analysis
• Increase the number of confiscation measures ordered and improve their effectiveness

Progress Made

Monaco has made some progress in reforming its framework enabling the implementation of United Nations targeted financial sanctions. However, there have been no prosecutions or convictions for terrorism financing in the country.

Next Steps

MONEYVAL has invited Monaco to report back in December 2024 and will apply its enhanced follow-up procedure. The report concludes that Monaco needs to fundamentally improve its efforts to investigate and prosecute financial crime, as well as strengthen its supervisory system and international cooperation.