Title: Monaco Under Scrutiny: Moneyval Report Reveals Anti-Money Laundering Concerns

Introduction

Monaco, renowned for its glamour and opulence, is under increased international scrutiny following the publication of the Moneyval fifth evaluation report. The report highlights areas of concern regarding Monaco’s efforts to combat money laundering and terrorist financing.

Moneyval’s Evaluation of Monaco’s AML/CFT Measures

• Monaco’s Progress: Moneyval noted significant progress but identified areas requiring improvement, particularly in the real estate sector.
• Real Estate Transactions: The small market size and lack of transparency have raised concerns.
• Response from the Principality’s Government: The government has pledged to strengthen regulations and introduce new measures to increase transparency and prevent money laundering activities.

Initiatives for a Stronger Financial System

• Appointment of a Financial Intelligence Unit (FIU): The government has established an FIU to bolster the financial system’s resilience.
• Ratification of International Conventions: Monaco has ratified several international anti-money laundering conventions.

Areas for Improvement Suggested by Moneyval

• Greater Cooperation from the Financial Prosecutor’s Office: The need for better cross-border cooperation and information sharing with FIUs in neighboring countries was highlighted.
• Risk-based Approaches: Moneyval encouraged Monaco to adopt a risk-based approach to identify suspicious transactions, prioritize prevention efforts, and establish effective information sharing systems between relevant authorities.

Monaco’s Response to Moneyval’s Recommendations

• Planned Measures: The Monaco government has addressed the recommendations by planning measures such as the establishment of a central register of beneficial ownership, stronger customer due diligence measures, and more effective interagency cooperation.

Conclusion

The Moneyval report serves as a reminder that fighting financial crimes requires global cooperation. Monaco’s efforts to strengthen its financial oversight and meet essential requirements set forth by international conventions signify its commitment to a transparent and resilient financial system.