San Marino Struggles to Enforce Financial Sanctions, Report Finds
======================================================
A recent report has highlighted concerns over San Marino’s ability to effectively enforce financial sanctions, raising questions about the country’s reputation as a tax haven.
Mixed Ratings Across AML/CFT Regime
The report found that San Marino was largely compliant in several areas of its anti-money laundering and counter-terrorism financing (AML/CFT) regime. These areas include:
- Assessing risk and applying a risk-based approach
- National cooperation and coordination
- Targeted financial sanctions related to terrorism and terrorist financing
However, the country fell short in other key areas, such as:
- Confiscation and provisional measures
- Money or value transfer services
- Transparency and beneficial ownership of legal persons
Partially Compliant Ratings
The report also identified several partially compliant ratings, including:
- Customer due diligence
- Record keeping
- Internal controls
San Marino was found to be non-compliant in just a few areas, including its treatment of new technologies and higher-risk countries.
Financial Experts Express Concerns
Financial experts have expressed concerns over San Marino’s ability to effectively enforce financial sanctions, particularly given the country’s reputation as a tax haven. “San Marino needs to take immediate action to strengthen its AML/CFT regime and ensure that it is fully compliant with international standards,” said a leading anti-money laundering expert.
International Consequences
The report’s findings are likely to raise concerns among international authorities and financial institutions, which may reconsider their relationships with San Marino in light of the country’s weaknesses. This could have significant consequences for San Marino’s economy and reputation.
Government Response
In response to the report, San Marino’s government has pledged to take steps to address the identified weaknesses and strengthen its anti-money laundering and counter-terrorism financing efforts. “We are committed to ensuring that our financial system is secure and compliant with international standards,” said a government spokesperson.
Overall, the report highlights the need for San Marino to implement reforms to improve its AML/CFT regime and ensure that it is fully compliant with international standards.