MONACO: MONEYVAL evaluation of measures to combat money laundering and terrorist financing
International ▪ European Union ▪ GAFI ▪ MONEYVAL
While Bill No. 1008 strengthening the mechanism to combat money laundering, terrorist financing and corruption (due to be passed before 31 December 2020 ) was voted on 16 December 2020, the 5th round of mutual evaluation of the Principality by MONEYVAL is underway. The on-site visit will take place in 2021.
♦ 2nd National Risk Assessment (ENR 2)
The work of the 2nd National Risk Assessment (ENR2) aimed at identifying, assessing and understanding the risks of money laundering and terrorist financing in Monaco, in order to adapt national procedures according to the risks, is underway. The ENR is part of the elements submitted to MONEYVAL for assessment.
On 15 April 2021, the Director of SICCFIN, who is also the head of the Monegasque delegation to the MONEYVAL committee, presented a progress report on the work of ENR2 to representatives of the public and private sectors and the main leaders of the Monegasque economic forces.
♦ Methodological training
On 9-10 December 2020, the MONEYVAL Secretariat provided (virtually) the usual training (taking place 1 year before the on-site visit) to representatives of the Financial Intelligence Unit (SICCFIN), law enforcement and supervisory authorities, representatives of financial institutions and the non-financial sector, aimed at familiarising them with the FATF and MONEYVAL methodology.
A one-day (face-to-face) training session was scheduled for February 2021.
See the Press Release of the Government of Monaco:
19 April 2021 >> https://en.gouv.mc/Portail-du-Gouvernement/Policy-Practice/The-Economy/News/Second-National-Money-Laundering-and-Financing-of-Terrorist-Financing-Risk-Assessment-in-View-of-the-MONEYVAL-Evaluation-A-New-Update
14 December 2020 >> https://en.gouv.mc/Portail-du-Gouvernement/Policy-Practice/The-Economy/News/MONEYVAL-evaluation-of-Principality-gets-underway-Widespread-mobilisation-in-the-Principality-shows-extent-of-interest-in-next-evaluation-to-be-conducted-by-Council-of-Europe-s-MONEYVAL-Committee
As a reminder, MONEYVAL (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism), a permanent monitoring body of the Council of Europe, is the “FATF-style regional body” responsible for evaluating the Principality of Monaco (the FATF directly evaluates its 38 members, including the neighbouring country which, like Monaco, will be subject to an on-site visit in 2021).
The evaluation system of MONEYVAL (Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) is a peer review, i.e. a self-assessment and mutual evaluation process based on the FATF model, with a more comprehensive set of anti-money laundering standards.
The international standards on which MONEYVAL’s evaluations are based are as follows:
- 40 FATF Recommendations of 16 February 2012 on combating money laundering, terrorist financing and the proliferation of weapons of mass destruction ;
- 9 FATF Special Recommendations on Terrorist Financing ;
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988 (Vienna Convention);
- United Nations Convention against Transnational Organised Crime 2000 (Palermo Convention);
- Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime of 1990 (Strasbourg Convention);
- International Convention for the Suppression of the Financing of Terrorism of 1999 (New York Convention);
- United Nations Security Council Resolutions on the freezing of assets linked to terrorism;
- Consolidated Directive (EU) 2015/849 of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing.
1] Deadline for transposition of the 5th European Union “Anti-Money Laundering and Terrorist Financing Directive” (EU Directive 2018/843) set by the Joint Committee composed of the Monegasque delegation (representatives appointed by the Minister of State and chaired by the Government Counsellor – Minister of Finance and the Economy or his representative) and the European Union delegation (French Republic, which chairs it, the European Commission, and the European Central Bank), provided for in Article 13 of the Monetary Agreement between the Principality of Monaco and the European Union.
The Principality of Monaco shall take measures with equivalent effect to the European Union directives relating to the fight against money laundering and the financing of terrorisme in accordance with the recommendations of the Financial Action Task Force against Money Laundering and the Financing of Terrorism (FATF), which are set out in Annex B of the Monetary Agreement concluded with the European Union, which has been in force since 1 December 2011.