As promised, Monaco has created a new task force in an effort to “step up” financial crime investigations just weeks after a Moneyval assessment called upon the Principality to “intensify efforts”.

After the Council of Europe’s anti-money-laundering body Moneyval encouraged Monaco to “further strengthen measures to combat money laundering and financing of terrorism, in particular when it comes to investigating and prosecuting money laundering, confiscating and recovering proceeds of crime as well as strengthening its supervisory system”, as reported by Monaco Life, the Principality has responded with the founding of a new supervisory committee that will oversee the implementation of Moneyval’s advice.

The concept of such a committee has been in the works since December 2021, but it was formally acted upon on 1st February of this year with the signing of the Sovereign Ordinance No. 9.729.

How will the new committee target financial crime in Monaco?

The committee’s primary mission is to “serve as a coordination and monitoring mechanism for all matters relating to the fight against money laundering, the fight against the financing of terrorism and the fight against the financing of the proliferation of weapons of mass destruction”.

In an effort to target the areas in which Moneyval viewed Monaco as underperforming, the committee will also:

• Develop and monitor the implementation of a national strategy and action plan to combat the crimes listed;
• Request, collect and analyse statistics and all relevant information from the competent authorities to continuously assess the effectiveness of the Principality’s financial crime system;
• Study international treaties and conventions on combating the afore mentioned crimes, and make recommendations to the government regarding their signature and ratification;
• Coordinate with the Advisory Committee on the Freezing of Funds and Economic Resources, which is responsible for the implementation of economic sanctions decreed by the United Nations, the European Union and the French Republic, and implement such sanctions;
• And submit an Annual Activity Report on financial crime in Monaco to the government and the Directorate of Judicial Services.

While all seems to be moving in a positive – and promising – direction, the speed at which the Monegasque government has acted on the recommendations set out by Moneyval and its near-overnight creation of the new committee has come as a surprise for some.

National Council reacts

The National Council has responded with “astonishment” in a communiqué released on 3rd February, in which it lamented the government’s alleged failure to “sufficiently inform” the council of the developments. The council has also bemoaned the decision not to include it within the first tier of influence, or First College, of the new structure. The National Council sits in the Second College alongside Monaco’s Order of Chartered Accountants, Association of Financial Activities, Real Estate Board, Chamber of Watchmaking and Jewellery, and other similar “professional organisations”.

Despite its displeasure with the ranking, the National Council has affirmed its dedication to the committee’s overall mission of fighting financial crime in Monaco, saying it “intends to play its full role within the framework of working towards the Moneyval recommendations”.

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Monaco to “step up” financial crime action after damning Moneyval report

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