AML / CFT Legislation
In the Principality, the money laundering offence is covered by Article 218 of Monaco's Criminal Code, which provides that "any person who knowingly, in any manner whatsoever, for himself or for another person, acquires movable or real assets by directly or indirectly using assets or funds of unlawful origin or knowingly possesses or uses such assets", and " any person who knowingly assists any transaction to transfer, invest, conceal or convert assets or funds of unlawful origin" shall be liable to five to ten years' imprisonment”.
Under Article 218-1, any person who attempts to commit the offences covered by article 218 or who conspires with others with a view in doing so is liable to the same penalty.
For the purposes of article 218 of the criminal Code, since the act amendment which entered into force last year, “assets and funds of unlawful origin are deemed to be the proceeds of offences punishable in Monegasque law by more than three years' imprisonment” as well as the proceeds of some other offences punishable by inferior penalties. Monaco’s definition of money laundering covers all categories of predicate offences designated by the FATF in its glossary of 40 Recommendations.
The offences referred to in article 218 shall be constituted even though the offence, from which the laundered funds derive, has been committed in another country, if it is punishable in the Principality and in the State where it has been perpetrated.
Monaco law recognises as aggravating circumstances – and accordingly punishes with a heavier sentence – offenders who act as a member of a criminal organization, take part into other international organized criminal activities, perform public duty, which helps them commit the offence, involve minors in committing the offence or have been convicted by a foreign court of a money laundering offence.
Further, in the Principality, law provides penalties for "Any person who, in disregard of his professional obligations, provides assistance with any transfer, investment, concealment or conversion of assets or funds of unlawful origin."
Article 219 provides for the confiscation of assets and funds of unlawful origin and sets out the conditions of confiscation.
In Monaco, the fight against of money laundering, terrorist financing and corruption is governed by Act 1362 of 3 August 2009 amended which lists the organisations required to take part and their obligations in that regard.
The various provisions set out in this enactment have been spelled out by the Sovereign Order 2318 of 3 August 2009 amended.
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