Money laundering, Monaco close to leaving the grey list

For the Principality of Monaco, the exit from the grey list of the Gafi (Financial Action Task Force) is approaching. The report published yesterday afternoon by Moneyval - the Council of Europe's permanent monitoring body that assesses compliance with international standards to combat money laundering and the financing of terrorism - points out that the Principality, during two years (of three) of this fifth assessment cycle has "improved measures" of prevention and countering "demonstrating significant progress in the level of compliance with the standards".

In particular, Moneyval's lengthy report notes that the French Midi financial centre has improved regulations on confiscations and provisional measures, adapted targeted financial sanctions, and subjected non-profit organisations and politically exposed persons to appropriate controls. Significant improvements, i.e. compliance with standards, were also achieved in the measures for non-financial businesses and professions, in compliance for transparency and effective ownership of legal entities, in the implementation of the Regulation and Supervision of Financial Institutions and in the enforcement of the powers of supervisory authorities. Furthermore, welcome improvements in the regulation and supervision of non-financial businesses and professions and also in the 'powers of law enforcement and investigative authorities', the tightening of administrative and criminal sanctions, and finally in mutual legal assistance.

The examinations for the Principality's readmission to the 'no sanctions' area of the Gafi are not yet finished - there will be a next six-monthly assessment cycle - but the ratings obtained so far should allow a return from grey-list purgatory within a rather tight timeframe.

Monaco had been downgraded last summer during the Singapore plenary of the Gafi, accompanying Venezuela to the anti-money laundering grey list just as Jamaica and Turkey were leaving it at the same time.

Retrocession, which for operators entails 'inconveniences' that are not minor: if the customer comes from a country included in the Gafi lists or if the object of the transaction has these countries as its geographical areas of destination, additional information is needed on the customer and the beneficial owner, on the purpose and nature of the relationship, intensifying the application of procedures aimed at ensuring constant control of the ongoing relationship or professional service. Difficulties are also encountered in payment circuits and, in general, in transactions, which follow more articulated paths and tracks.