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Monaco : AML / CFT-C & Crypto in 2019

SICCFIN, the national authority in charge of the fight against money laundering, the financing of terrorism and corruption (LCB / FT-C) publishes its 2019 activity report and unveils its new “Crypto assets, blockchain, ICO” department.

In accordance with the provisions of Bill No. 1.362 of August 3, 2009, amended, strengthening the system for combating money laundering, terrorist financing and corruption, the SICCFIN (Financial Circuits Information and Control Service) is publishing its Annual Report.

The opportunity to notify the highlights of 2019, and to recall the challenge of the next National Risk Assessment (ENR) imposed by the 4th European Anti-Money Laundering Directive, in accordance with the FATF Recommendations, which requires from the Principality of Monaco to identify, assess and understand the potential or real risks to which it would be most specifically exposed in terms of AML / CFT-C, and to mobilize financial, legal, logistical and human resources needed.

A year rich in terms of regulatory changes since SICCFIN and the National Council worked together, on the one hand:

  • on the transposition into Monegasque law of the 4th Directive on AML / CFT-C (Directive (EU) 2015/849 of 8 May 2015) by means of the amendment of Bill No.1.362 and Sovereign Ordinance no. 2.318 occurred on June 26, 2018, which implies that even if the Principality of Monaco is not one of the member countries of the European Union, it must however, in application of the provisions of the Monetary Agreement that it has signed with the latter, transpose into its legislation the European directives relating to the fight against money laundering and the financing of terrorism (AML / CFT) to ensure its full compliance with the FATF recommendations. Sovereign Order No. 3.559 of December 5, 2011 making enforceable the Monetary Agreement concluded on November 29, 2011 between the European Union and the Principality of Monaco.

On the other hand:

  • on the transposition of the 5th Anti-Money Laundering Directive under the Bill n ° 1.008, tabled in a public session at the National Council on April 6, 2020, of which the project aims to adjust and complete the regulations in force with regard to the 4th Directive and the recommendations of the FATF.

And while the deadline for the implementation of this project in the Principality had been set for December 31, 2020, a 6th directive is already underway which would attempt to fill in the gaps of the previous ones, and expand the list of offenses, including cyber attacks. .

It would also add more intangible notions, which would go beyond the framework of traditional KYC, such as the e-reputation of customers, for which social networks are considered as a significant sources of additional information.

The great novelty for SICCFIN in 2019 is also the impetus given by its Director Michel Hunault to set up a “Cryptoactives, Blokchain, ICO” Pole dedicated to playing an essential role in the AML / CFT-C of financing Blockchain crypto assets projects planned in the Principality. (Report available here)

Cryptoassets constituting a field particularly conducive to numerous embezzlements, in order to ensure maximum transparency for the stakeholders of these ICO / STO projects, the Cryptoactifs Pole of SICCFIN will adopt a transversal approach both as a national supervisor and the Financial Intelligence Unit.

In an unequivocal manner, the SICCFIN includes in extenso cryptocurrencies such as bitcoin (BTC) and ether (ETH) to cryptoassets under its authority, suggesting that even if the first crypto projects of Monaco will apply on digitized securitization, the cryptocurrencies underlying certain tokenization projects may not be excluded in the future.

N.B.Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing as well that directives 2009/138 / CE and 2013/36 / EU, was incorporated into Annex B (number 4) of the Monetary Agreement of 29 November 2011 by Sovereign Order n ° 7.440 of 26 April 2019.

Article: Joana Foglia

Post Author: Wealth Monaco