New Law combats Money Laundering and Terrorism
The National Council voted unanimously on a bill which combats money laundering and the financing of terrorism.
Bill 1008, which was passed in December 2020, aims to update and strengthen the system for combating money laundering, terrorist financing and corruption, in accordance with the Principality’s international commitments. Its purpose is to take into account the latest recommendations formulated by the Financial Action Group (FATF) and to introduce measures relating to the Monetary Agreement between the Principality of Monaco and the European Union from 29 November 2011.
In a statement from November 2008, cited in the text of the new law, HSH the Sovereign Prince expressed himself in these terms: “The fight against money laundering, and the denunciation of terrorism that it allows, are priorities for me….For many years, the Principality has been engaged in the fight against money laundering and funding terrorism, in order, at the same time, to ensure the security and the stability of the economy of Monaco.”
What does this new law mean for the average Monegasque?
In the daily life of individuals, only one thing will change. When buying goods in cash that amounts to over 10,000 euros, individuals will have to be prepared to show identity documents.
And one main thing will remain the same: the new law also allows the Principality to continue to have the euro as its national currency.
The Bill’s summary, which is available on the National Council’s website for everyone to read, is a whopping 79 pages long.
The complex law was written over sixty meetings between the national advisers and the Directorates of: Judicial Affairs, Budget, Treasury, Economic Expansion and Judicial services. But part of the new law boils down to limiting access to sums of money from anonymous sources, which will help the fight against money laundering, terrorist financing and corruption.