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“It’s very complicated to establish that money is of illicit origin”

by Milena Radoman
President of the Legislation Commission of the National Council and rapporteur of anti-money
laundering texts, Thomas Brezzo, discusses the evolution of the Moneyval case. The lawyer believes
that “in Monaco, since we left the blacklist of tax havens, we have implemented more draconian
measures than abroad and yet we still suffer from this negative image of a country which launders
money”…

Thomas Brezzo,
Président de la Commission Législation du Conseil national et rapporteur des textes anti-blanchiment ©Conseil National
President of the Legislation Commission of the National Council and rapporteur of anti-money laundering texts

Is the transposition of European anti-money At the National Council, we had, for example, of money laundering risks. For example, when
laundering directives automatic or does alerted the government on several occasions, selling a property, the transaction goes through
the Monégasque legislator adapt to the as early as 2018, that the CERC (Control Report an estate agent, a solicitor and a bank. The
Monégasque context? Does each state have Review Board) did not conform to European goal of European authorities is to encourage
room for manoeuvre? standards which impose an independent all stakeholders to be vigilant at all stages and
Certain provisions are all-encompassing but administrative authority. We were not listened- thus have better knowledge of the client and the
the majority are adapted to the particular to. Likewise, the members of this commission origin of funds; vigilance obligations are more
situation of Monaco. The directive lays a were appointed in 2020 and the CERC met or less onerous depending on the operations.
foundation. The interprÉtative notice allows us for the first time in 2021! There was a two- or We must distinguish occasional transactions
to understand the meaning of the provisions three-year delay in processing control reports from business relationships and sometimes
and guides us on how to transpose them. We pointing out bad practices. In view of the above, there's a thin line. For example, in the case of
also take into account the recommendations the result of the evaluation is not surprising. estate agents, the AMSF considers the house-
of the Moneyval committee and the FATF, hunting process (agent/client conversations,
since verification of the correct conformity In its report, does Moneyval highlight visits) a business relationship, whereas it is
of our transposition is ensured by these in particular the shortcomings of the a one-time sale...
organisations. professions concerned?
Banking and financial institutions have been Is the luxury industry under scrutiny?
The Moneyval report is rather negative (with applying anti-money laundering measures The national risk assessment established
eight scores at 2 and three at 1, out of 11 for years and have perfect knowledge of the that the luxury sector was conducive to
criteria, 1 being the worst score, 4 the best). subject. Today, it is the non-financial regulated money laundering, in particular because of
Did you expect such an assessment? Do you professions that are requiring the most effort, the amount of spending made there but also
think this is a political report? in order to increase the sources of identification because in France cash payment is limited

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