The regulations relating to the fight against money laundering, terrorist financing and corruption ("AML") is soon to be amended, in accordance with Monaco's commitments to the European Union. These expected modifications of Monaco AML Regulation are an opportunity to review one of the key measures of the Monegasque AML regulations' latest reform : the creation of the CECR.
As a reminder, law n° 1.462 of June 28, 2018 modifying law n° 1.362 of August 3, 2009 instituted the Commission for the Examination of Control Reports (« CECR »).
This commission is empowered to propose sanctions to the Minister of State in case of non-compliance to Monaco AML’s provisions.
Following a SICCFIN’s (local AML regulator) inspection, the CECR is automatically seized to determine appropriate measures to be taken (or not) against an organization that has been subject to an on-site or off-site inspection.
If substantial failure(s) to AML obligation are identified, the CECR will determine the sanctions to be proposed to the Minister of State (solely empowered to impose sanctions). The contemplated sanctions are determined during a procedure before the CECR which is contradictory. The audited organization is in this regard benefiting from the right to be assisted by a lawyer.
To summarize, the procedure from SICCFIN’s inspection to potential sanction (as the case may be) is the following :
More specifically, the proceedings’ steps before the CECR in case of substantial breaches identified are as follows:
Given the complexity of this procedure and the financial and reputational stakes involved, it is essential for all organisation submitted to AML obligations to diligently manage the various stages of this administrative procedure.
We remain at your disposal to assist you if you are or have recently been subject to a control by SICCFIN's agents.
Reference text :
- Law No. 1.362 of August 3, 2009
- Law No. 1.462 of June 28, 2018 ;
- Sovereign Ordinance No. 7.065 of August 3, 2018 ;
- Sovereign Ordinance No. 7.285 of January 18, 2019 ;
- Sovereign Ordinance No. 7.559 of June 28, 2019.
