Combating money laundering

Exemplary regulations and behaviour

For many years, the Principality has pursued an active policy in combating money laundering and terrorist financing (LBC/FT).

In terms of national law, Monaco adopts legal mechanism to combat money laundering and terrorist financing in line with the international standards recommended by the Financial Action Task Force (FATF).

With this aim in mind, and since the first anti money laundering law of 1993, the legal and statutory framework of Monaco has been regularly amended and repeatedly strengthened in order to comply with changes in international good practices.

The legal mechanism is currently based on Act No. 1.362, dated 3 August 2009 , which completely overhauled the provisions that had, until that point, been scattered across various pieces of legislation. The Act also updated the standards to comply with the FATF Recommendations.

To ensure that the mechanism is implemented, the Principality has a financial investigation unit, the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN).

Entrusted with broad investigative powers the SICCFIN has two main roles: 

• To analyse and process declarations of suspicious transactions carried out by professionals subject to the provisions of Act No. 1.362 and the relevant implementing legislation
• To monitor the proper implementation of the legal obligations of these professionals by conducting on-site visits

Since joining the Council of Europe in 2004, Monaco has regularly participated in the work of  the MONEYVAL Experts’ Committee. The objective of the Committee is to ensure that member states have put in place an effective system to counter money laundering and terrorist financing, and that they comply with the relevant international standards in this area.

Also on an international level SICCFIN is a member of the Egmont Group (an international organisation bringing together the financial intelligence units of more than 140 countries) and as of the end of February 2015, has signed 43 administrative cooperation agreements with its foreign counterparts.

Through these legislative reforms and its international commitments, the action of the Monaco Government with respect to money laundering and terrorist financing is contributing to the development and modernisation of the country’s banking and financial sector.

Monaco thus intends to guarantee a level of legal security for monetary and financial transactions which complies with the standards expected of a modern, attractive banking centre.