Incomplete databases, late registration of suspicious transactions and lack of appropriate means to complete the investigation by the competent authorities. They were found by the authorities in Monacowhich resulted in a worst score for how he handles money laundering and asset recovery, according to the news agency. Bloomberg and moneyreview.gr. The Moneyval Committee, which evaluates measures to combat money laundering and terrorist financing, has identified some areas of improvement over previous assessments, but also found many areas of concern.

The money laundering program has been described as “unbalanced” as the investigations and convictions “do not seem to fit Monaco’s risk profile, while complex cases show great weaknesses”. Since 2018, the Monegasque prosecutor’s office has delivered just six convictions in what Moneyval considers “simple” cases. The maximum sentence was three years and the highest fine was 150,000 euros. The authorities rarely seize assets and money. In general, “there is no strategic approach” to money laundering. With no personal income tax, Monaco is home to the most millionaires and billionaires in the world. The volume of securities and deposits in 2021 amounted to 153 billion euros, which is about 20 times the GDP of the Principality. “Monaco’s international profile, especially through its banking and financial services, makes it an ideal target for suspicious financial flows,” said Moneyval. Experts noted that the biggest shadows exist in the asset management sector, the real estate market and the yachting industry. In their report, they identify significant issues, from the ability to collect financial data to the effectiveness of confiscating money in financial crimes. Monaco has also turned down at least half of extradition requests from foreign governments, and there are “great and unusual obstacles” in helping other countries investigate cases involving the principality.

Monaco is lagging behind in the fight against money laundering.

Moreover, as the committee found, even the system of registration of suspicious transactions, which underlies the relevant investigations, is imperfect. Only a small group of organizations submit transparency reports, including accountants and lawyers. Some reports reach the competent authority as soon as 100 days after suspicious transactions have been committed, and even by mail or through distributors. Despite technical limitations, Monaco’s competent authority, SICCFIN, is considered the financial information centre. Moneyval felt it had such a big role to play in managing financial crime that it needed to increase its staff and facilities. “However, the authorities do not seem to consult her in detail during their investigations,” the related assessment notes.

Between 2017 and 2021, out of 192 money laundering investigations, only 19 were convicted. According to Moneyval, this figure does not correspond to the profile of Monaco.