Prepared by the IMF and the World Bank in consultation with the Financial Action Task Force (FATF) ROSC Working Group, the Basel Committee, the International Association of Insurance Commissioners (IAIS), and the International Organization of Securities Commissioners (IOSCO) and the Egmont Group.
A new treaty, replacing the 1918 treaty, was signed in October 2002.
The core functions of an FIU are to collect, analyze, and disseminate financial information and intelligence, consistent with the definition of an FIU set forth by the Egmont Group.
The authorities noted (see paragraph 16, Volume II) that: the Swiss supervisor recently asked all Swiss banks present in the center to carry out a thorough review of the application of Swiss standards concerning PEP (politically exposed persons). During 2001 and 2002, 11 Swiss subsidiaries/branches in Monaco were inspected by their group external auditors. The reports were made available to the local supervisor and resulted in the confirmation of the effectiveness of the procedures used.
The Constitution was changed in April 2002 to increase the number of Council members from 18 to 24. Currently, and until the next elections, there are actually 18 Councillors.
In addition, some of the provisions of the 1984 Act referring to French criminal or company law are only applicable in Monaco with reference to Monegasque law.
Amended in 2000.
Amended in 2001.
Law No. 1.162 was amended by Law No. 1.253 of July 12, 2002. Unless the context requires a different interpretation, references in this report to the AML Law are to the law as amended.
The authorities noted that 18 entities had been examined by end-April, 2003, 14 by the DEE and 4 by SICCFIN; 2 authorizations have been removed as a result. There have also been 6 requests for authorization, 5 of which were refused. A Monegasque CSP professional association is being created.
SICCFIN had visited two entities by end-2002. SICCFIN also organized a seminar for all financial institutions, including CSPs, on the new legislation in December 2002.
The initial training of SICCFIN staff was carried out by TRACFIN and other FIUs. In addition, the authorities note, SICCFIN staff recently received training on specific onsite and offsite supervision of CSPs, and SICCFIN is a member of Egmont’s working group on training.
In Monaco, Article 57 of the French banking law of 1984 provides that all directors, officers, and employees of banks are subject to professional secrecy requirements. The Monegasque-French exchange of letters of 1987 (Article 4) made Article 57 of the French banking law applicable in Monaco, with sanctions given by Article 308 of the Monegasque penal code. Similarly, under the Monegasque Law no. 975 of July 12, 1975, on the status of civil servants, all civil servants are bound to professional secrecy with respect to information acquired in the course of their work. A similar provision applies to members of the Supervisory Commission for Portfolio Management (CCGP).
This was superceded in October 2002 by a revised methodology endorsed by FATF, the Fund, and the World Bank
The authorities responded that law 1.162, Art. 31, provided SICCFIN with the ability to share information and that SO 15.454, Art. 1, broadens SICCFIN’s ability to communicate information to foreign supervisors. By addressing a former major weakness in SICCFIN’s role, they consider that this amendment makes SICCFIN compliant with BCP 15, and that as a result, SICCFIN can now cooperate with other FIUs or financial supervisors in all the fields in its scope of competence (see Paragraph 17 of Volume II).
Sovereign Order No. 14.446 also included attorneys, except if they have acquired the suspicious information in the course of ensuring the defense of their clients. The status of attorneys’ reporting obligations is now unclear since a decision of the Supreme Tribunal of March 6, 2001 struck down the reference to attorneys in the Sovereign Order on the grounds that it was too vaguely worded, but left in place a similar reference to attorneys in the AML Law. It is understood that the matter will be taken up in the context of a forthcoming updating of the Sovereign Order.
International cooperation in AML/CFT matters includes mutual legal assistance in criminal matters, extradition and exchange of information between FIUs and other competent authorities.
An international letter rogatory is a formal request from the authorities of one country for assistance from another country in criminal matters.
DEE would remain responsible for other oversight, such as licensing, production of accounts, etc.