Financial Crime World

Banks in San Marino Step Up Efforts to Prevent Money Laundering, MONEYVAL Reports

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San Marino has made significant progress in improving its measures to combat money laundering and terrorist financing, according to a recent report by MONEYVAL, the Council of Europe’s anti-money laundering body. While the country has demonstrated a high level of effectiveness in its anti-money laundering and terrorist financing policies, there are still areas that require improvement.

Progress and Challenges

The report highlights several key areas where San Marino has made significant strides:

  • Establishing an overall framework and practical actions for international cooperation
  • Providing timely and constructive mutual legal assistance
  • Demonstrating a high level of effectiveness in anti-money laundering and terrorist financing policies, coordination, financial intelligence, confiscation, and prosecution

However, MONEYVAL also identified several areas where further improvements are needed:

Key Areas for Improvement

  • Supervision: San Marino must enhance its supervision to ensure that all private sector categories conduct regular checks of their business-specific money laundering and terrorist financing risks.
  • Preventative Measures: The country needs to improve preventative measures related to transparency of legal persons and arrangements, including customer due diligence and targeted financial sanctions.
  • Money Laundering Investigation and Prosecution: San Marino must establish a criminal justice policy on investigating and prosecuting money laundering cases involving foreign predicates, and conduct proactive parallel investigations as a matter of policy.
  • Financial Sanctions for Terrorist Financing: The country needs to take steps to ensure that all private sector categories conduct regular checks of their business-specific money laundering and terrorist financing risks.

Recommendations

MONEYVAL also made several recommendations to enhance San Marino’s efforts to prevent money laundering:

  • Market Entry Controls: Enhance market entry controls to prevent criminals from holding management positions in designated businesses and virtual assets service providers.
  • Financial Intelligence Agency: Intensify work on strategic analysis of specific money laundering trends, patterns, and schemes, and increase awareness training among financial institutions.
  • Prison Capacity: Address the lack of prison capacity and take steps to ensure that all private sector categories conduct regular checks of their business-specific money laundering and terrorist financing risks.

Conclusion

As a result of the positive report, San Marino will be subject to MONEYVAL’s regular follow-up reporting process, joining only five other member-jurisdictions in achieving this outcome. The country’s efforts to improve its anti-money laundering measures demonstrate its commitment to preventing financial crimes and protecting its citizens.