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CMS MONACO: The new AMSF sanctioning panel – a

guarantee of independence and effectiveness?

by Stephan Pastor & Emeline Elbaz-Mondeux
Following the recommendations of the Moneyval Report, the Monegasque legislator adopted four
texts profoundly reforming Law N° 1.362 of 3 August 2009.

Law N° 1.549 of 6 July 2023 created the new procedure institutionalises the possibility
Monégasque Financial Security Authority for the person subject to AML Laws to accept
(AMSF), an independent administrative a sanction proposal made by the agent
authority, replacing the Financial Circuits when the sanctions envisaged are the least
Information and Control Service (SICCFIN). serious (warning, reprimand, injunctions or
The AMSF now has a triple function of when the financial cost incurred is less than
financial intelligence, supervision of those €100,000). In the absence of acceptance
subject to it and sanctioning. Its existence by the person subject to AML Laws or if
and independence are guaranteed by a the sanction envisaged is serious (financial
specific allocation from the State Budget sanction greater than €100,000, or sanction
set at €4,491,200 for the 2024 financial year. consisting of a temporary suspension,
revocation of the work permit, suspension or
Independence: cornerstone of the AMSF’s © CMS lack of the declaration of activity, revocation
new sanctioning function Emeline Elbaz-Mondeux, Counsel of exercise authorisation, ban on holding
Many person subject to AML Laws, having salaried employment, temporary suspension
been subject to an inspection by SICCFIN does not intervene in the designation of the from exercising management functions etc),
followed by an audition to the CERC, were members of the sanctioning panel who are the person subject to AML Laws is heard in
concerned about a lack of clarity, coherence also required to inform their department a session represented or assisted by the
and, often, the often adversarial process head of any situation of conflict of interest. counsel of their choice in order to present
of these procedures. The Moneyval Report their observations orally. The sanctioning
also pointed out also that the intervention The legislator wants procedures to be panel which has heard the person subject
of the Minister of State in the context of this more effective to the law deliberates privately and renders
procedure would be likely to undermine the Whilst the CERC could only be called upon by a decision reasoned in fact and in law.
effectiveness of administrative sanctions. an inspection report reporting one or more
Despite successive revisions to the texts, serious, repeated and systematic breaches, In conclusion, it should be remembered that
the CERC continued to appear structurally the new sanction function can, for its part, the CERC remains competent to examine all
dependent on the executive. The new texts be called upon in various ways: cases started before the entry into force of
should now make it possible to clarify and → Via a “shortened” procedure the law which must take place, at the latest,
view objectively the role of the sanctioning In the case of one of the 11 simple breaches by 30 September 2024. The sanctioning
body in the eyes of litigants and to confer established by the text which has not panel of the AMSF is not yet operational
on it the legitimacy which it deserves. The been regularised after formal notice, the and it is, therefore, appropriate to hope that
texts also meet national and international sanctioning panel may impose a fine of the objectives set by the legislator will be
requirements in terms of the independence less than €5,000 without a hearing of the achieved in practice, in order to restore the
and impartiality of the tribunal and the subject persons. confidence of those subject to it in a context
protection of the rights of the defence. → Via a “standard” procedure where international pressure is encouraging
Although united within the AMSF, the new In all other cases, once duly notified, the Monaco to sanction offenders in an even
supervision and sanction functions operate sanction function decides, via a dedicated more dissuasive manner.
independently of each other. Members of the agent, to refer the matter to the sanction panel
sanctioning panel will not be able to exercise and, if necessary, lays out the grievances.
supervisory functions and vice versa. This agent does not receive any instructions
from any authority and does not participate
Sanctioning panel: deliberative body of the in the deliberations of the sanctioning panel.
sanctioning function Notification of the grievances to the person
The sanctioning panel is the competent subject to AML Laws opens a period of two
body to impose administrative sanctions in months during which they may obtain a copy
the event of non-compliance. It is made up of the file upon simple request in order to
of two AMSF agents and a magistrate with present their written observations.
five years’ experience in the Monegasque
judicial system who chairs it. The executive In addition to the shortened procedure, the © FreePik

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