Monte-Carlo Inspiration

Compliance “CONSIDERABLE WORK HAS BEEN DONE”

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Banking and finance banques et finance

«Un travail considérable a été fait»

Appointed Secretary of State for Justice by H.S.H. Prince Albert II, Samuel Vuelta-Simon took office on September 16 th . Former Public Prosecutor in Toulouse (France), he has extensive expertise particularly in fighting economic and financial crime. He explains how the Principality is redoubling its efforts to meet the highest international standards. Interview.

©Michael Alesi - Direction de la Communication

Monaco, a country of just 2 square km that is however a financial place known on the international stage. Monaco, un pays d’à peine plus de 2 km2 qui est toutefois une place financière reconnue sur la scène internationale.

What are your first impressions of the country’s overall situation regarding anti-money laundering? First, I observe that considerable work has been done in implementing a range of appropriate solutions. The Monégasque legislative system, a continuous chain between the Prince’s Government and the National Council, has never produced so many essential texts in such a short time: about ten important laws and numerous others modified between December 2022 and June 2024. Although not part of the Prince’s Government, my department works daily and confidently with the Minister of State’s services and all ministerial departments on all projects. The momentum continues, as Monégasque positive law indeed needed updating to meet new requirements, both from the international community and the evolution of global crime. How do you explain that the Financial Action Task Force (FATF) considers Monaco insufficiently transparent when compliance has been applied for many years? First, the lens of international evaluation has changed. The Council of Europe members’ scrutiny has pointed out deficiencies in Monaco’s anti-money laundering and counter-terrorism financing system. The latest evaluation report of the Monégasque system by Moneyval [Editor’s note: committee of experts on the evaluation of anti-money laundering measures within the Council

of Europe] in 2022 was therefore not good. This was despite the evaluation

being deemed more compliant during the fourth evaluation cycle in 2013.

While the listing system doesn’t have immediate legal effects for listed countries,

it certainly tarnishes their image and, beyond that, reduces the international

community’s confidence. A country judged insufficiently transparent in its

economic and financial activities is one that will be trusted less for developing

activities or investing capital.

“among the 16 recommendations that were made by Moneyval, 15 have been satisfied”

Trust is at the heart of everything. It regulates consumption, markets, stock

exchanges, and employment worldwide. This same trust is undermined

when there are reservations about a country’s compliance with international

standards. The consequences can be felt whenever economic activity

or financial flow interacts with a foreign country. Thus, commercial transactions

will be more heavily taxed, fees increased, certain transactions refused, etc.