Monaco Receives Positive “MONEYVAL” Report After FATF Grey Listing

The Council of Europe’s anti-money laundering and counter-terrorist financing (AML/CTF) regulatory body, MONEYVAL, revealed that Monaco is combatting money laundering & terrorism financing.

Monaco is continuously trying to remove itself from the FATF grey list by complying with specific FATF recommendations.

The recent Moneyval follow-up report highlights Monaco’s success in improving compliance with 15 FATF recommendations. Monaco has improved several areas, including sanctions related to terrorism & proliferation, confiscation procedures, supervision of financial institutions, and transparency of ownership structures.

The report also indicates that Monaco has successfully upgraded its compliance rating for three key FATF recommendations: 6, 7, and 12. Several other recommendations have been re-rated as “largely compliant(LC).” Only one recommendation on “new technologies” remains partially compliant(PC), and no other areas are categorized as “non-compliant.”

Monaco is now fully compliant(C) with 7 FATF recommendations and largely compliant with 32. The positive actions taken by the authorities have led to improvements in the following recommendations, including:

• According to recommendation 4, AML measures are strengthened to seize assets that were used for criminal purposes.
• According to recommendations 6 & 7, the implementation of financial sanctions is strengthened which is related to terrorist financing and proliferation.
• According to recommendation 8, the management & regulation of non-profit organizations (NGO’s) is improved, so they can’t be used for illegal purposes.
• According to recommendation 12, due diligence measures for PEPs are strengthened.
• According to recommendations 23 & 28, supervision and regulation of designated non-financial businesses and professions (DNFBP’s) are strengthened.
• According to recommendations 24 and 25, transparency and beneficial ownership information for legal persons is enhanced.
• According to recommendations 26 and 27, regulation and management of financial institutions and supervisory powers are improved.
• According to recommendation 31, powers & resources for law enforcement and investigative agencies are strengthened.
• According to recommendation 34, guidance & feedback systems for regulated entities are improved.
• According to recommendation 35, enforcement of sanctions for breaching AML/CFT regulation is improved.
• According to recommendation 37, cooperation with foreign regulatory bodies on mutual legal assistance requests is improved.

Read Also

• Nigeria Exits FATF Grey List by Meeting 37 of 40 AML Standards
• Monaco and Venezuela Made It To FATF’s ‘Grey List’
• UAE Is Removed From The FATF Grey List As A Victory For The Country

A Mutual Evaluation Report (MER) was conducted by a team of experts from Andorra, Armenia, Moldova, Romania, and San Marino and assessed Monaco’s progress in addressing technical compliance (TC) deficiencies. These shortcomings were identified in its previous evaluation.

The report also indicates that while some progress has been made, Monaco is expected to address most, if not all, TC deficiencies by the end of the third year, following the adoption of the MER.

According to a press release, in June 2024, Monaco made a high-level political commitment with FATF and the Council of Europe’s Moneyval to strengthen its regulatory framework.