Financial Crime World

Title: Monaco’s Anti-Money Laundering and Counter-Terrorist Financing Measures Under Scrutiny: Fifth Round MONEYVAL Report

Monaco’s AML/CTF Measures Evaluated by MONEYVAL

The European monitoring body, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), published a fifth round mutual evaluation report on Monaco’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures in December 2022.

About MONEYVAL

MONEYVAL’s primary objective is to assess compliance with international standards against money laundering and terrorist financing and to make recommendations for improvements when necessary. The report consists of an executive summary, key findings, an analysis of risks and context, and an assessment of Monaco’s progress in implementing AML/CTF policies.

Key Findings of the Report

ML/TF Risks and Context

  • Monaco faces a significant external ML risk due to its international financial activities.
  • Authorities need to deepen their analysis of risks, especially in sectors like casinos, CSPs, trusts, and virtual assets, to better understand the risks.
  • The understanding of TF risks is still improving.

Effectiveness of Policy Setting and Coordination

  • Monaco has made significant efforts to identify ML/TF risks but requires further analysis.
  • Effective implementation of the post-NRA1 action plan is essential.

Financial Intelligence, ML Investigations, and Confiscation

  • Investigative authorities have limited direct access to financial intelligence.
  • The number of ML investigations, prosecutions, and convictions is low.
  • Confiscation orders have been limited, and there is no clear strategy to manage seized assets effectively.
  • Monaco has a robust legal framework for AML/CTF measures.
  • However, the supervision and transparency of legal persons need improvement.
  • Implementation of targeted financial sanctions related to terrorism activities also requires attention.

Recommendations from MONEYVAL

MONEYVAL made several recommendations for Monaco to strengthen its AML/CTF system:

  1. Assess risks and apply a risk-based approach.
  2. Improve international cooperation.
  3. Address ML offenses, confiscation, and terrorist financing offenses.
  4. Supervision, regulation, and supervision of financial institutions.
  5. Implement prevention measures.

To implement these recommendations successfully, Monaco needs to give them careful consideration and effective implementation.