The Monegasque Financial Services Sector: A Regulatory Overview

Introduction

The Monegasque financial services sector is subject to a robust regulatory framework, with the Ministry of State exercising oversight through the Counselor for Finance and Economy. This article provides an overview of the key aspects of this framework.

Regulatory Framework

Law No. 1.162: Anti-Money Laundering and Terrorist Financing

Law No. 1.162 of July 7, 1993, is a critical component of the Monegasque regulatory framework. This law contains two lists of institutions subject to its provisions:

• Financial Institutions: Required to identify customers on the basis of an official identifying document and record their identity when establishing business relations or conducting transactions.
• Other Institutions: Must verify the identity of occasional customers who carry out a transaction involving more than €15,000 or rent a safe deposit box.

Customer Due Diligence

The AML Law requires financial institutions to:

• Verify the identity of persons on whose behalf an account is opened, a safe deposit box is rented, or a transaction is carried out if the person requesting the service appears not to be acting on their own behalf.
• Ascribe special attention to politically-exposed persons and periodic review of customer accounts.

Compliance Status

The assessment finds that Monegasque financial institutions are compliant with the requirements for customer due diligence. However, there is room for improvement in terms of special attention to politically-exposed persons and periodic review of customer accounts.

Conclusion

In conclusion, the Monegasque financial services sector is subject to a comprehensive regulatory framework aimed at preventing money laundering and terrorist financing. While compliance with customer due diligence requirements is generally satisfactory, there are areas where improvement is needed.