Principality of Monaco strengthens legal arsenal for preventing and combating financial crime

On Monday 31 January, the National Council passed two bills submitted by the Government on preventing and combating financial crime.

These legislative developments demonstrate the Principality’s determination to continue to adapt its legislation to meet the leading standards and international commitments on tackling money laundering, terrorist financing and corruption.

At the behest of the Sovereign Prince, the Principality’s aim is to ensure that the Monegasque banking and financial industry continues to operate at a high level.

Productive discussions between Government representatives and industry professionals on the one hand, and between the Government and the National Council on the other, enabled the finalisation, within a very short timeframe, of provisions of particular importance in terms of preserving Monaco’s credibility and attractiveness.

In keeping with the Principality’s goal of strengthening its approach in a complex, constantly changing area, discussions, both at institutional level and between the public and private sectors are continuing, including via meetings of the Committee for Coordination and Monitoring of the National Strategy on Money Laundering, Terrorist Financing, Proliferation of Weapons of Mass Destruction and Corruption. The Committee will meet for the first time on 3 February 2022, chaired by the Minister of State Pierre Dartout.

The new measure adopted yesterday evening will, for example, boost the capacity of the justice system to confiscate fraudulently acquired capital. It also expands the scope of offences relating to payment instruments, in that it seeks to punish fraudulent transfer not only of money or monetary value, but also of “virtual currency”.

The legislation also sets out some of the obligations that apply to professionals who are required to assist with efforts to combat money laundering, particularly in the event of atypical transactions. In addition, the list of professionals subject to these requirements was extended following the conclusions of the National Risk Assessment (NRA2), with the aim of striking a reasonable balance between an effective understanding of risk and maintaining the attractiveness of the industry in Monaco.

Numerous consultations were held on all of these new provisions, enabling the Government to take account of the various concerns, explain the choices made and continue to project the public interest.