Monaco Official Stripped of Public Functions After Infringing Intellectual Property

A high-ranking official in Monaco has been stripped of their public functions and banned from performing any future public duties after it was discovered that they had infringed on intellectual property rights.

Background

The official, identified as Subject X, had previously rented an apartment in Monaco using false pretenses. The apartment was actually owned by another individual, Y, who is a foreign national and suspected to be involved with organized crime groups.

• Subject X paid the rent in cash, using staggered payments to avoid detection by authorities.
• The actual tenant, Y, failed to make rental payments, leading to eviction proceedings being initiated by a bailiff.
• Investigations revealed that Subject X had links to money laundering and misuse of corporate assets, with investigations ongoing overseas.

Consequences

The official’s actions have been deemed as an infringement on intellectual property rights, leading to their ban from performing any public functions.

Monaco Officials Warned of Internal and External Threats

In a separate report, officials in Monaco have warned of internal and external threats to the principality’s financial system. According to the report:

• More than 75% of proceeds of crime come from overseas, with foreign nationals resident overseas or in Monaco being major players.
• Internal threats emanate from Monegasque nationals and tax consultants service providers (TCSPs), who are using the country’s bank accounts for money laundering purposes.
• Less than 7% of cases have no identifiable link to external threats.

Case Studies Reveal Widespread Money Laundering

The report presented several case studies, including:

• Cash being paid into Monaco bank accounts from companies under investigation for money laundering and tax evasion in other countries.
• Individuals providing services to sanctioned persons, purchasing properties and assets in Monaco using illegal funds.
• Multi-million euro payments made to foreign public officials.

Financial Transparency Advisors Warn of Growing Threats

The report was presented by Financial Transparency Advisors GmbH, a leading provider of financial intelligence and risk assessment services. The organization warned that the growing threats posed by internal and external factors could have serious consequences for Monaco’s financial system if left unchecked.

“We urge authorities in Monaco to take immediate action to address these threats and protect the principality’s reputation as a safe haven for financial transactions,” said Simon Lord, presenter of the report.

Next Steps

The next session on TCSP Sectorial Risk Assessment is scheduled for February 27, 2024.