Over the last two and a half years, as Monaco has intensified its anti-corruption measures in a bid to bring the Principality in line with international standards, some 38 companies have been sanctioned for violations of the Moneyval code against money laundering, terrorist financing or corruption.
Since the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval) made its landmark visit to the Principality back in early 2022, the Prince’s Government has taken a number of significant steps towards the stricter regulation of and tougher financial controls on companies that are based within its borders.
A series of follow-up evaluations have been carried out since this first visit, which have allowed local authorities to reflect on the progress made in the last two and a half years, as well as to identify further areas for improvement.
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From asset declarations to the establishment of an ethics committee for members of the government, and from new legal obligations for companies to increased transparency regarding the issuing of residency permits, Monaco’s decision-makers have clearly demonstrated their collective will to improve the Principality’s “grey list” status, and no fewer than 38 companies have been sanctioned for violations related to money laundering, terrorist financing or corruption.
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On 5th August, the Monaco Government released the details of these sanctions.
In 2022, following that first visit by the Moneyval team, 12 companies were sanctioned, six warnings and four censures were issued, and six financial penalties amounting to €173,000 were handed out. These fines were distributed across the financial sector (€30,000), the real estate sector (€23,000) and the non-financial sector excluding real estate (€120,000).
The following year, a further 17 companies received sanctions and 12 financial penalties were accorded. These fines totalled just over €1,000,000: €50,000 for the financial sector; €383,500 for the real estate sector; and €580,000 for the non-financial sector excluding real estate. On top of these punitive measures, five warnings and 10 censures were issued, and one company was temporarily banned from operating for six months.
So far in 2024, nine companies have been sanctioned and four fines amounting to €238,000 have been issued. An undisclosed number of companies representing the financial sector have been fined a total of €200,000, while fines for the non-financial sector excluding real estate make up the remaining €38,000.
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Photo source: Thibault Briand, Unsplash