Anti-Money Laundering Report
Monaco is one of the countries of the world that has a very low recorded criminality rate when all the different types of crime are put together. This is the result of an extremely strict legal framework and preventive and institutional measures. The Anti-Money Laundering Report is one of the actions implemented as part of the fight against money laundering and the financing of terrorism. Only a member of the Order of Public Accountants is qualified to issue this report.
What is the Anti-Money Laundering Report ?
The Anti-Money Laundering Report is governed by Law no. 1362 of 3 August 2009 on the fight against money laundering, the financing of terrorism and corruption and by Implementing Sovereign Ordinance no. 2318 of 3 August 2009. The report makes it possible to ensure that a company has a general organisation from the point of view of both its personnel and its internal control procedures of a type that will avoid, identify and prevent the carrying out of operations associated with money laundering, the financing of terrorism and corruption. The report is sent to the Service d’Information et de Contrôle sur les Circuits Financiers (SICCFIN), which is the institution responsible for verifying application of Law no. 1362 and the measures taken to carry it out by all the operators that are subject to the law. SICCFIN is the central national authority in charge of collecting, analysing and transmitting information in accordance with the fight against money laundering, the financing of terrorism and corruption. The report is based on an understanding of the information contained in the activity report sent by the anti-money laundering manager of companies that are subject to the reporting obligations, and on the work underlying the information that is provided.
What companies must provide Anti-Money Laundering Reports ?
The obligation to draft an annual anti-money laundering report applies to enterprises that have the following characteristics :
- insurance companies
- enterprises included in the list relating to Article 3 of Law no. 214 of 27 February 1936, which amended Law no. 207 of 12 July 1935 on trusts
- enterprises that habitually perform operations relating to the formation, management and administration of legal persons, legal entities or trusts on behalf of third parties
- bureaux de change
- money transmission services
- professions governed by Law no. 1252 of 12 July 2002 on the conditions for carrying out its activities relating to certain real estate and business asset transactions
- property traders
- economic, legal or tax consultants
- cash surveillance, protection and transport services
- dealers in, and persons organising the sale of, precious stones, precious materials, antiquities, works of art and other high-value objects
- commissioners of pawnbrokers
- all enterprises not mentioned above that carry out, monitor or advise on transactions involving the movement of capital in a professional capacity.
In the case of enterprises subject to annual controls by auditors, it is the auditors who are the recipients of the activity report. They are not necessarily responsible for the preparation of the annual report, which can be prepared by another member of the Order.
Why does it have to be issued by a member of the Monegasque Order ?
This obligation is governed by Article 33 of Law no. 1362 of 3 August 2009, which provides that the annual report that makes it possible to assess application of the law and the measures taken for its performance must be prepared by a chartered accountant or certified accountant who is registered with the Order of Public Accountants of the Principality of Monaco.
This task is based on the work previously agreed with the company, and involves the control procedures the member of the Monegasque Order deems it appropriate to adopt in order to prepare the report. The work does not constitute an audit, and does not have the objective of investigating all the company's transactions or relations. It is based in particular on a verification that internal procedures in the area exist and are operating properly.
A copy of this report is sent to SICCFIN and the management of the entities concerned.
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