Financial Crime World

Title: Moneyval Urges Monaco to Intensify Anti-Money Laundering Measures: Prince’s Government Responds

Scathing Report from Moneyval

Monoégasque authorities have received a scathing report from the Council of Europe’s anti-money-laundering body, Moneyval. The report, released on January 23rd, highlights the need for Monaco to make significant improvements in areas such as investigating and prosecuting money laundering, confiscating and recovering proceeds of crime, and strengthening its supervisory system.

Key Findings and Concerns

In its assessment of Monaco’s adherence to the Financial Action Task Force (FATF) Recommendations, Moneyval praised the Principality’s efforts in risk identification. However, it urged the Prince’s Government to address the following concerns:

  1. Investigating and prosecuting money laundering: Moneyval noted the “modest” number of money laundering investigations, “very low number” of convictions, and limited confiscation measures. The need to enhance efforts in identifying and prioritizing ML cases was emphasized.
  2. Confiscating and recovering proceeds of crime: Moneyval emphasized the importance of seizing, confiscating, and recovering the proceeds of money laundering and predicate offenses.
  3. Strengthening the supervisory system: The report stated the need for Monaco to improve the use of financial intelligence and overall coordination between various law enforcement and financial intelligence agencies.
  4. Applicable ML sanctions for non-profits: Moneyval expressed concerns that the applicable ML sanctions for non-profit organizations are not dissuasive.
  5. STRs from the banking sector: Moneyval pointed out that the number of Suspicious Transaction Reports (STRs) from sectors like casinos and jewelers is satisfactory but remains limited.

Monegasque Government’s Response

Following the report’s release, Monaco’s Minister of Finance and the Economy, Jean Castellini, acknowledged the government’s progress in implementing certain measures before Moneyval’s final visit. The Monegasque Government adopted several pieces of legislation at the end of 2022:

  1. International mutual legal assistance
  2. Seizure and confiscation of instruments
  3. Proceeds of crime

Moneyval noted that the Monegasque Financial Intelligence Unit (SICCFIN) has demonstrated its capacity to produce high-quality analysis. However, it is currently not being fully utilized by investigative authorities. The report stressed the need for Monaco to make better use of SICCFIN’s intelligence and improve overall coordination between various agencies.

Monaco’s Action Plan

Monaco has now entered its enhanced follow-up procedure, with an action plan and progress report due by December 2024. Monaco’s Minister of State, Pierre Dartout, reiterated the commitment to combat money laundering and financing of terrorism in line with the vision of Prince Albert II. “The Principality has the capacities and resources to reach the highest level within the prescribed timeframe,” Dartout assured.

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