Joseph Vrachimis’ Post

🗞 Home of the coveted Grand Prix and playground for the super-rich, Monaco has become the latest high-profile European jurisdiction to enter FATF’s grey list. It’s the latest to join the 21-strong list of nations considered risky in the face of international financial crime, having already taken significant action following unverified claims against people close to Prince Albert II. Venezuela was also added. It’s not all doom and gloom! Other countries have worked their way out for all new entries, including Turkey (which faced intense scrutiny). FATF’s action is influencing better AML/CFT measures, which will hopefully ripple across the globe. https://lnkd.in/euQAa94F

🚨BREAKING: Monaco Added to FATF Grey List The Financial Action Task Force (FATF), the global money laundering watchdog, has added Monaco to its "grey list" of countries under increased monitoring due to strategic deficiencies in combating money laundering and terrorist financing. This move poses significant challenges for Monaco's €160 billion funds industry, which is a cornerstone of the principality's economy. 🏦 Being grey listed means Monaco's funds industry is likely to face increased regulatory scrutiny and reputational damage, potentially deterring international investors and financial institutions from doing business in the country. This could lead to a decline in foreign investment and economic activity. 📉 The FATF cited specific deficiencies, including Monaco's slow pace in tracking criminal assets abroad and handling funds potentially related to foreign tax offenses. Monaco is urged to increase resources for money laundering investigations and to ensure "effective, dissuasive, and proportionate" sanctions, which could impact its ability to maintain its status as a secure hub for the world's wealthy to park their money. They will likely remain under increased monitoring for at least two years as they work to implement reforms.💼 This development underscores the importance of robust AML measures for financial centres like Monaco, even as they work to maintain their appeal to global investors. Funds industry professionals should closely monitor Monaco's compliance efforts and their potential impact on business operations and client relationships going forward. 🔍 #FATF #AML #FinancialRegulation #Compliance 

🇲🇨🤒🚨 Monaco Added to FATF Grey List: What This Means for Business and Finance 🚨 🥸The Financial Action Task Force (FATF) has recently placed Monaco on its grey list, signaling increased scrutiny over the country's measures to combat money laundering and terrorist financing. 🤒Causes: Inadequate Legal Framework: - Monaco's existing regulations were found lacking in effectively preventing financial crimes. 🫨Enforcement Issues: - Insufficient enforcement of existing laws has been a significant concern, with gaps in prosecuting and penalizing offenses. - Transparency Shortfalls: Limited transparency in beneficial ownership and inadequate mechanisms for monitoring financial activities have contributed to this decision. Consequences: Increased Compliance Costs: - Businesses operating in or through Monaco will face higher compliance costs as they adjust to new regulations and scrutiny. Reputation Risk: Being on the grey list may tarnish Monaco's reputation as a financial hub, leading to potential loss of investor confidence. Enhanced Due Diligence: Financial transactions involving Monaco will undergo more stringent due diligence, slowing down processes and increasing operational complexity. Potential for Sanctions: Continued non-compliance could escalate to sanctions, further impacting financial operations and international relations. Business Implications: Investors: Need to reassess risk profiles and potential returns in light of new regulatory requirements. Financial Institutions: Must implement rigorous checks and bolster anti-money laundering (AML) frameworks to meet international standards. International Trade: Companies engaged in cross-border trade may experience delays and increased scrutiny in transactions involving Monaco. Monaco's inclusion on the FATF grey list serves as a critical reminder of the importance of robust regulatory frameworks and transparent financial practices. Businesses must stay vigilant and proactive in adapting to these changes to ensure compliance and maintain trust in the global financial system.

BREAKING: The tiny European country of #Monaco, home to the world's super-rich, was today (Friday) added to #FATF's grey list. It is a big blow to the principality which has been fighting a desperate rearguard action to avoid being placed on the #watchlist. Prince Albert II (pictured) is head of state of the Mediterranean principality, nestled between France and Italy. The country's s financial sector has €160BN under management - 20 times GDP. According to the International Monetary Fund greylisted countries experience “a large and statistically significant reduction in capital inflows.” Monaco, which is effectively the city-state of Monte Carlo, is likely to remain on the watchlist for two years and to be removed, #FATF says it must: - Strengthen understanding of income tax #fraud committed abroad - Identify and seek the seizure of criminal #assets abroad - Apply sanctions for AML/CFT breaches and breaches of beneficial ownership #BO requirements - Properly resource its #FIU and strengthen #STR reporting  - Seize #property bought from criminal activities. Separately on 'AML Intelligence' today we report how #Venezuela was also placed on the #watchlist; while #Turkiye and #Jamaica were removed. Are you an 'AML Intelligence' Member? Don't miss out on the latest regulatory intelligence. Join a community of Members including the world's top banks, regulators, policymakers and governmental bodies. Don't miss out become a Member today here: https://lnkd.in/eMbkm6p #followthemoney #aml #cft #banks #banking #fintech #finreg #regtech #regulators #compliance #FCC #policy #moneyval Stephen Rae James Treacy Paul O'Donoghue Alisha H. Tom Downes Sarah Beth Felix Federica Taccogna Sujata Dasgupta

#Monaco , the European Country of the super rich has, today , been added to the Financial Action Task Force #Grey list and would need to, amongst its-to -do # resource its FIU. The resourcing of such an institution and guaranteeing its operational independence is very important for a country to demonstrate as it evidences the country's commitment to the effective implementation of AML/CFT/CPF efforts ! other findings are seemingly consequential. The full report is available on the FATF website

Very important update on the FATF's grey list. The "FATF week" brought a new amendment on its "grey list, adding Monaco and Venezuela. These jurisdictions made a high level political commitment to work with FATFand implement an action plan to increase the efficency of their AML/CFT system. With three LE ratings and other 8 ME ratings , measuring the effectiveness of their system, as per their MER Report, Monaco (Moneyval jurisdiction) should step up its efforts to increase efficiency of its confiscation regime, supervision component and investigation and prosecution of TF. #FATF #FATFnews #FATFgreylist

📣 Treasury / OFAC Authorizes Wind-Down of Transactions with Infinity International and Sirius 2010 Under New License On June 18, 2024,  the U.S. Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 4 under the Western Balkans Stabilization Regulations (31 CFR part 588). ✅ This license authorizes the wind-down of transactions involving Infinity International Group d.o.o. Banja Luka, Sirius 2010 d.o.o. Banja Luka, and any entities they own or control 50% or more of. 📅 This authorization is valid until August 17, 2024, provided payments to blocked persons are made into blocked accounts. It does not cover other transactions prohibited by the WBSR unless separately authorized. Original source 👉: https://lnkd.in/gqhSzM68 #USsanctions #sanctionsupdate #sanctionscompliance #OFAC #WesternBalkans #BlockedEntities #FinancialRegulations #EconomicSanctions

Concerns from the past weeks have come true as #FATF adds #Monaco to it’s #greylist. To keep up with the FATF’s requirements, the country must address the following: - due diligence of tax fraud committed abroad - tracing and freezing of assets abroad - regulatory enforcement of AML/CFT violations and beneficial ownership requirements - strengthen FIU and #STR reporting - asset seizures This leads to increased compliance expectations in working with Monaco customers and financial institutions. To stay up to date with changes, reach out to discuss regular ML/TF country risk solution. Stay vigilant and let me know if you have any FinCrime compliance topics to discuss!

📢 News in Financial Compliance! 📢 The Financial Action Task Force (FATF) has made significant updates to its grey list: Turkey has been removed while Monaco has been added, among other changes. 🔍 What does this mean? 🇹🇷  Turkey: Removal from the grey list highlights significant progress in combating money laundering and terrorist financing. Despite some ongoing challenges, this marks a major step forward. 🇲🇨  Monaco: Inclusion in the grey list means increased monitoring to address strategic deficiencies in its AML/CFT framework. As one of Europe's high-profile financial hubs, this development is noteworthy. 📊 These changes reflect ongoing global efforts to enhance financial transparency and security. #FinancialCompliance #AML #CFT #FATF #Monaco #Turkey #FinanceNews

#EU member countries have agreed on an upper limit of €10,000 on #cash payments, a press release said on Thursday, in a bid to bolster rules against #money laundering. #antimoneylaundering #AML #moneylaundering #dirtymoney #CFT #counterterrorismfinancing #financialcrime #financialcrimes #compliance #complianceofficer #duediligence #terroristfinancing #pep #sanctions #audit #FinancialIntelligenceUnits #FIU #SuspiciousActivityReport #cdd #kyc #regulations #CFP #risk #riskmanagement #investigation #monitoring #payments #europeanunion #europe #euro