Monaco has decided to reform the agenda to rectify identified deficiencies in a tall order. As of January 2023, Monaco received the evaluation report from Moneyval. The Principality has initiated four major legislative packages. The packages contain 481 articles that were introduced over the past 16 months, The efforts by the Principality has brought to amendments in 11 of the existing laws, one Sovereign Ordinance, and 3 legal codes. The collaboration amongst the Government, the National Council, public authorities, and private sector stakeholders brought about these changes. This also demonstrated a united approach in achieving compliance.
The country has improved its anti-money laundering and anti-terrorist financing measures. The solutions by Monaco showed tremendous progress in being compliant with the standards set by FATF (Financial Action Task Force). The progress for anti-money laundering solutions also matched the standards set by Moneyval, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, as per the follow-up report that was released today.
Monaco’s efforts towards anti-money laundering solutions
Being recognized by Moneyval for Monaco’s achievements is a major milestone for the financial integrity of Principality. With the reforms in place, the global reputation of Monaco as a trusted financial jurisdiction is reinforced. This also shows that Monaco is dedicatedly working towards transparency and international cooperation.
Monaco is focused on implementing the action plan and maintaining compliance even in the future. All the measures taken by Monaco exemplifies its commitment in safeguarding the financial systems and focus on getting out of the grey list-its ultimate goal.
Anti-money laundering actions
All the actions taken by the authorities of Monaco has have improved it’s compliance with the Financial Action Task Force’s Recommendations
- 4 (Confiscation and provisional measures)
- 6 (Targeted financial sanctions related to terrorism and terrorist financing)
- 7 (Targeted financial sanctions related to proliferation)
- 8 (Non-profit organizations)
- 12 (Politically exposed persons)
- 23 (Measures related to designated non-financial businesses and professions)
- 24 (Transparency and beneficial ownership of legal persons)
- 25 (Transparency and beneficial ownership of legal arrangements)
- 26 (Regulation and supervision of financial institutions)
- 27 (Powers of supervisors)
- 28 (Regulation and supervision of designated non-financial businesses and professions)
- 31 (Powers of law enforcement and investigative authorities)
- 34 (Guidance and feedback)
- 35 (Sanctions)
- 37 (Mutual legal assistance).
As a result of the actions taken and the progress made by the Monegasque authorities since 2022, MONEYVAL decided to re-rate Monaco. According to the re-rating, Monaco has largely complied with Recommendations 4, 8, 24, 25, 26, 27, 28, 31, 34, 35 and 37 (formerly rated partially compliant).
For the Recommendation 15 (New technologies), which is the remaining recommendation rated as partially compliant, the authorities did not request a re-rating thus being outside the scope of this follow-up.
Monaco targets compliance
The success achieved by Monaco in meeting the general expectation of MONEYVAL for countries to have addressed most if not all of the technical compliance deficiencies within two years after the adoption of the mutual evaluation report. Monaco has achieved full compliance with 7 of the 40 FATF Recommendations constituting the international AML/CFT standard in addition to large compliance with 32 other FATF Recommendations. The implementation of 32 Recommendations was found “largely compliant”, and one further Recommendation (New technologies) remains “partially compliant” by jurisdictions. Monaco has no “non-compliant” ratings.
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