The Monaco Government has recently disclosed the sanctions imposed on companies for violations of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements. This action follows the recommendations from the Audit Report Review Commission (C.E.R.C.) in response to the MONEYVAL evaluation of February 2022, which resulted in Monaco being placed on the FATF’s (Financial Action Task Force) grey list and subjected to increased scrutiny.
Since 2022, financial penalties amounting to nearly €1.5 million have been levied, with at least 38 companies facing sanctions. Additional measures included warnings, reprimands, and even the temporary suspension of licenses to operate.
These actions are part of Monaco’s broader efforts to align with FATF recommendations. On top of a more rigorous application of sanctions for AML/CFT breaches, this includes improvements in the quality of Suspicious Transaction Reports (STRs), an increase in the seizure of assets suspected to be linked to criminal activities, and overall enhancing judicial efficiency and the application of sanctions for money laundering. This highly impacts players of the Monaco market subject to AML regulations as well as investors willing to start business, invest and open bank accounts in Monaco.
DL Corporate & Regulatory has extensive experience in navigating Monaco’s AML/CFT landscape. For over a decade, our legal experts have advised major banks and various entities—including Corporate Service Providers (CSPs), asset managers, law firms, and the yachting sector—ensuring compliance with Monaco’s stringent AML/CFT laws. We strongly recommend intensifying AML training sessions and reviewing internal procedures—both of which are legal obligations under Monaco law for entities subject to AML regulations—to mitigate the impact of Monaco’s greylisting and ensure full compliance with the new, more complex AML/CFT obligations.
For further information or to learn more about our AML/CFT legal services, please feel free to contact us.
