Monaco has advanced its fight against financial crime with a cooperation agreement enhancing asset seizure and management. Paired with an upgraded Moneyval rating, the move boosts AML/CTF compliance.

On 11th December 2024, Monaco took another step in combating financial crime with the signing of a cooperation agreement between Richard Dubant, Director of Monaco’s Asset Management Service, and Eric Arella, Director of Public Security. The agreement focuses on enhancing collaboration in the seizure and management of criminal assets, supporting the Principality’s compliance with international anti-money laundering (AML) and counter-terrorism financing (CTF) standards.

This partnership aligns with recent developments noted in Moneyval’s 2024 Follow-Up Report, which upgraded Monaco’s compliance rating on Recommendation 4 (Confiscation and Provisional Measures) from “Partially Compliant” to “Largely Compliant”. The improvement reflects the Principality’s progress in addressing deficiencies highlighted in 2022. These included limited mechanisms for confiscating third-party property, gaps in provisional measures for certain predicate offences, and a lack of robust frameworks for managing seized or confiscated assets.

The newly signed agreement provides a structured framework for early identification, tracing, and preservation of assets during criminal investigations. It also facilitates the enforcement of judicial decisions and promotes best practices through training programs, aligning with recent legislative reforms under Article 12 of the Criminal Code and Article 596-1 of the Code of Criminal Procedure. These provisions allow for comprehensive asset seizure, including property held by third parties, proceeds of money laundering, and assets linked to terrorist financing.

Moneyval’s report noted Monaco’s enhanced ability to protect the rights of bona fide third parties during seizures and confiscations, a critical improvement in aligning with international standards. The establishment of the Asset Management Office ensures effective oversight of frozen and confiscated assets, further addressing previous gaps.

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Photo: Eric Arella, Director of Public Security (left), and Richard Dubant, Director of Monaco’s Asset Management Service (right). Credit: Direction de la Sûreté publique