Monaco – Know Your Customer (KYC) Rules

 

 

The Principality of Monaco is the second-smallest country in Europe. It is linked closely to France and is tied to the economic apparatus of the European Union (EU) through its customs union with France and its use of the euro as its official currency. Monaco is known for its security and political stability. Monaco‘s state budget is based primarily on taxes, duties, and excises which account for 75% of the total income; casino revenues constitute less than 3% of the state budget. Private banking and fund management dominate the financial sector. Monaco‘s 36 banks and three financial institutions hold more than 300,000 accounts and manage total assets of about 750 billion euros (approximately $102.8 billion). Non-residents total 46% of the financial institutions‘ total number of clients, representing 60% of the total assets and deposits, respectively almost 84,000 clients and 45 billion euros (approximately $57.6 billion). Money laundering charges relate mainly to offenses committed abroad. Reportedly, the Principality does not face ordinary forms of organized crime, nor is there a significant market for smuggled goods.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

Monaco – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Monégasque Law:

    • Banks
    • Financial institutions
    • Casinos
    • Trustees and company service providers

Monaco – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 637 in 2010

Number of CTRs received and time frame: Not available

The following is a list of STR covered entities covered by Nicaraguan Law:

    • Banks
    • Insurance companies
    • Stockbrokers
    • Corporate service providers
    • Portfolio managers
    • Some trustees
    • Institutions within the offshore sector
    • Casinos
    • Money remitters
    • Real estate brokers
    • Consultants or advisors in business, legal or tax matters
    • Dealers in precious stones, precious materials, antiquities, fine art and other valuable assets
    • Lawyers
    • Notaries
    • Accountants

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: 21 in 2010
Convictions: 14 in 2010

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

The Government of Monaco (GOM) should enhance the authority of its financial intelligence unit (FIU) to forward reports and share financial intelligence with law enforcement and foreign FIUs even when the report or information obtained does not relate specifically to drug trafficking, organized crime, or terrorist financing.

The GOM should become a party to the UN Convention against Corruption.