Monegasque Authorities Introduce Stricter Wire Transfer Regulations

In an effort to combat money laundering and terrorist financing, the Monegasque authorities have introduced new draft legislation that requires financial institutions to verify the identity of customers making wire transfers, regardless of the amount involved.

New Regulations: Key Highlights

• Financial institutions must identify their customers and agents, as well as verify their identities based on documentary proof.
• The regulations specify that financial institutions must take all reasonable measures to verify the list of real beneficial owners of legal entities or trusts, including those who exercise control over at least 25% of the assets.

Wire Transfer Requirements

Under the new regulations, financial institutions must:

• Identify customers who wish to make wire transfers, regardless of the amount involved.
• Verify the identity of occasional customers when they wish to make a wire transfer.
• Identify and verify the list of persons authorized to manage the customer’s account.
• Take all reasonable measures to verify the list of real beneficial owners of legal entities or trusts.

Identity Verification Requirements

To comply with the new regulations, financial institutions must:

• Verify the identity of customers using official documents carrying a photograph.
• Verify the address provided by the customer using another document likely to provide proof of the real address.
• Take a copy of all verification documents.

Implementation Timeline

The Monegasque authorities will shortly publish a draft sovereign order outlining the specific measures financial institutions must take to comply with the new regulations. Financial institutions are advised to review their current practices and procedures to ensure compliance with the new regulations. Failure to comply may result in serious consequences, including fines and penalties.

Wire Transfer Request

To facilitate the implementation of these new regulations, we kindly request that you provide us with the necessary identification documents and information required for wire transfer verification. If you have any questions or concerns regarding this matter, please do not hesitate to contact us.

Thank you for your cooperation in this matter.

[Your Financial Institution’s Name]