Financial Crime World

Monaco: MONEYVAL Urges Stronger Measures to Combat Money Laundering and Finance Terrorism

MONEYVAL’s Report and Recommendations

On the publication of its latest report, the Council of Europe’s anti-money laundering body, MONEYVAL, urged Monaco to intensify its efforts in investigating and prosecuting money laundering (ML) and financing of terrorism (FT) cases, recovering proceeds of crime, and strengthening its supervisory system.

Key Findings from the on-site visit conducted in March 2022:

  • Progress in ML/FT risk understanding, international cooperation, use of financial intelligence, and application of AML/CFT measures in the private sector.
  • Areas for significant improvement: transparency of legal persons, TF investigations and prosecutions, supervision, and confiscation of proceeds of crime.

Major Concerns and Need for Improvements

Supervision

  • Deficiencies in beneficial ownership (BO) fit and proper checks:compromises the capacity of authorities to apply tailored supervision for obliged entities.
  • Existing sanctions are neither proportionate nor dissuasive.

Money Laundering Investigations and Prosecutions

  • Low number of ML convictions and confiscation measures ordered.
  • Identify and prioritize ML cases, seize and recover proceeds of crime and predicate offenses.

Private Sector

  • Implementation of AML/CFT obligations.
  • Poorer AML/CFT risk understanding and compliance culture particularly among casinos and jewellers.

Area for Enhancement: Financing Terrorism

  • No prosecutions or convictions for FT.
  • Insufficient risk analysis.

Targeted Financial Sanctions (TFS)

  • Commended framework for implementing TFS under UNSCRs.
  • Address technical deficiencies related to freezing measures.
  • Implement a risk-based approach in the non-profit sector.

Monaco is encouraged to address these concerns and enhance its efforts in counteracting ML and FT to maintain its international reputation as a credible and responsible financial center. The Principality is expected to report back in December 2024 to follow up on the progress made. For further details, consult the MONEYVAL website: [ENGLISH](/) [FRENCH](/) .