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Home > Legislation > Panel Of Laws > Act 1362 of 3 August 2009

General Information

Legislation

-Panel Of Laws -Historical record -List of professionals -Declaration Form (MO

n°2010-175) Cooperation

Act 1362 of 3 August 2009 on the fight against money laundering, terrorist financing and corruption

ALBERT II

BY THE GRACE OF GOD SOVEREIGN PRINCE OF MONACO

Have given and give Our assent to the Act set forth below, adopted by the National Council at its session on 23 July 2009.

CHAPTER I GENERAL PROVISIONS

Archives

INTRODUCTORY ARTICLE

Freezing Funds

Statements Moneyval / FATF

For the purposes of the application of this Act, money laundering is to be understood as the offences laid down in Section VII of Chapter III of Book III of the Criminal Code, and corruption is to be understood as the offences laid down in Paragraph IV of Section II of the same Chapter, as well as in Article 6 of Sovereign Order 605 of 1 August 2006.

Similarly, terrorist financing is to be understood within the meaning of Article 2 of Sovereign Order 15320 of 8 April 2002 on the suppression of terrorist financing and covers all amounts and operations concerning sums which might be related to terrorism, to terrorist acts or terrorist organizations, or intended to be used for the financing of the latter.

The organizations and persons described in Articles 1 and 2 shall be fully involved in the application of this Act by identifying all acts of money laundering, terrorist financing or corruption.

ARTICLE 1

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The following organizations and persons are subject to the provisions of this Act: 1°) persons carrying out banking or bank intermediation activities on a regular basis; 2°) persons carrying out the activities covered by Article 1 of Act 1338 of 7 September 2007 on financial activities; 3°) insurance companies mentioned in Article 3 of Sovereign Order 4178 of 12 December 1968 instituting State supervision of insurance undertakings of all types and of capitalization undertakings and organizing the insurance industry, insurance intermediaries, agents and brokers established in the Principality concerning life insurance and other forms of insurance related to investments; 4°) persons appearing on the list described in Article 3 of Act 214 of 27 February 1936 amending Act 207 of 12 July 1935 on trusts, amended; 5°) persons usually carrying out operations of formation, management and administration of legal persons, legal entities or trusts in favour of third parties and who, in this capacity either: - intervene as agents to constitute a legal person, a legal entity or a trust; - intervene or carry out the necessary arrangements so that another person may carry out the duties of administrator or company secretary of a partnership, shareholder in a joint stock company or hold a similar position for other legal persons or entities; - provide a registered office, commercial address or premises, or an administrative or postal address for a partnership or joint stock company or any other legal person or entity; - are involved in or carry out the necessary arrangements so that another person may act in the capacity of trust administrator; - are involved in or carry out the necessary arrangements so that another person may intervene in the capacity of a shareholder acting on behalf of any other person; 6°) gaming houses; 7°) bureaux de change; 8°) fund transmitters;

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9°) professions subject to Act 1252 of 12 July 2002 on occupation entry requirements for some transactions relating to real estate and goodwill; 10°) property traders; 11°) consultants or advisors in business, legal or tax matters; 12°) surveillance, protection and cash-in-transit services; 13°) dealers and persons organizing the sale of precious stones, precious materials, antiquities, works of art and other valuable assets; 14°) agents of those granting loans secured by pledges; 15°) persons not mentioned above or in Article 2 who, professionally, carry out, monitor or give advice on operations leading to the movement of capital.

Organizations and persons carrying out financial activities that fulfil the following conditions are not subject to the provisions of this Act if the activities: - generate a turnover which does not exceed a maximum amount fixed by Sovereign Order; - are limited to transactions which must not exceed a maximum amount per client and per transaction, fixed by Sovereign Order, and the transaction must be carried out in a single operation or several operations appearing as related; - do not constitute the main activity and generate a turnover not exceeding a percentage of the total turnover of the organization or person concerned, the amount of which is to be fixed by Sovereign Order; - are accessory to a main activity which is not mentioned in the first paragraph of this Article and are directly linked to it; - are carried out solely for clients of the main activity and not generally offered to the public.

ARTICLE 2 Where these provisions of this Act expressly state this, they are also applicable to the persons mentioned hereinafter:

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1째) notaries; 2째) bailiffs; 3째) chartered accountants and approved accountants; 4째) defense attorneys, lawyers and junior barristers if: - they assist their clients in the preparation or carrying out of transactions concerning the purchase or sale of property or commercial enterprises, in the organization of the capital contributions required to set up, manage or run companies, or even to set up, manage or run trusts, companies or similar bodies; - they act for their clients and on their behalf in any financial or property transaction.

CHAPTER II THE OBLIGATION TO IDENTIFY CLIENTS AND DUE DILIGENCE ARTICLE 3 The organizations and persons described in Articles 1 and 2 must, when forming business relations, identify their usual clients as well as their agents and check the identities of each of them using substantiating documents of which they shall keep a copy.

The said organizations or persons shall do the same for occasional clients, when the latter wish to perform: - a transfer of funds; - a transaction, the amount of which reaches or exceeds an amount fixed by Sovereign Order, whether carried out in one or several seemingly related operations; - an operation, even of an amount below the said sum, where there is a suspicion of money laundering, terrorist financing or corruption.

The provisions of the first paragraph shall also apply when the said organizations or persons have doubts as to the truth or accuracy of data identifying a client with whom they already have business relations.

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This identification and verification concerns the surname, first name and address for natural persons.

For legal persons, legal entities and trusts, identification and verification concerns the company name, the registered office, the list of directors and the knowledge of the provisions governing the power to incur the liability of the legal person, legal entity or trust, without prejudice to the measures laid down in the first paragraph of Article 5.

Identification also concerns the purpose and nature of the contemplated business relations.

The regulations for the application of this Article shall be determined by Sovereign Order.

ARTICLE 4 The organizations and persons described in Articles 1 and 2 must exercise constant due diligence with regard to business relations: - by examining the transactions or operations concluded at any time during these relations and if necessary the origin of funds, so as to check that they are consistent with regard to the knowledge that the said organizations or persons have of their clients, their socio-economic background, their commercial activities and their risk profile; - by keeping documents, data or information held up to date through a continual and attentive examination of operations or transactions carried out.

When the organizations and persons described in Articles 1 and 2 cannot fulfil the obligations laid down in Article 3 and in the first paragraph of this Article, they may neither form nor maintain business relations. They shall consider whether the Service d'Information et de Contr么le sur les Circuits Financiers (Department of Financial Trading Information and Control; SICCFIN) should be informed, in accordance with the provisions of Chapter VI. The organizations and persons described in points 1 to 5 of Article 1 are authorized to have the obligations laid down in Article 3 and the first paragraph of this Article carried out by a third party, if the latter is a credit establishment or a financial institution meeting the following two conditions: - that they have themselves fulfilled their duty of due diligence; - that they are established in a State where legislation contains provisions which are considered to be equivalent to those in Articles 3 to 5 and are subject to monitoring with regard to compliance with these obligations.

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The organizations and persons described in points 6 to 15 of Article 1, as well as the persons described in Article 2, are authorized to have the obligations laid down in Article 3 and the first paragraph of this Article carried out by a third party, if the latter is a credit establishment or a financial institution that is subject to this Act or one of the persons described in Article 2, and they have themselves fulfilled their duty of due diligence.

The organizations described in Article 1 whose activities cover bank transfers and transfers of funds are required to incorporate in these operations and in messages relating thereto, precise and relevant information concerning the clients who are the instructing parties.

These same organizations shall keep all of this information and forward it when intervening as an intermediary in a chain of payments.

Specific measures may be taken for cross-border transfers sent in batches and bank transfers and transfers of funds of a permanent nature for salaries, annuities or pensions which do not generate a high risk of money laundering, terrorist financing or corruption.

The conditions under which this information must be stored or made available to the authorities or other financial institutions shall be determined by Sovereign Order.

The organizations described in point 6 of Article 1 must identify their clients and check their identities, using substantiating documents a copy of which is to be taken, when they purchase or exchange tokens or chips for amounts equal to or above amounts fixed by Sovereign Order, as well as when they wish to perform any other financial transaction related to gaming, without prejudice to the application of the measures laid down in Article 5.

The regulations for the application of the obligations laid down in this Article according to the risk that the client, business relation or operation represents shall be fixed by Sovereign Order.

ARTICLE 5 The organizations and persons described in Articles 1 and 2 must identify and take all reasonable measures to check the identity of the person or persons for whom the operation or transaction is carried out: 1째) if they doubt that a client with whom they already have a business relationship is acting on his or her own behalf; 2째) if the client is a legal person, a legal entity or a trust.

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In the last case, the measures include the identification of the natural person or persons who, ultimately, own or control the client entity.

The conditions for the application of the obligations laid down in this Article according to the risk that the client, business relation, operation or transaction represents shall be fixed by Sovereign Order.

ARTICLE 6 Any anonymous transaction using Treasury bills or cash bonds is prohibited.

The provisions of Article 3 apply to subscribers to treasury bills as defined in Article 3 of Order 1105 of 25 March 1955 concerning the issuance of Treasury bills, and interest-bearing notes as defined

by Act 712 of 18 December 1961 regulating the issuance of interest-bearing notes by commercial or industrial undertakings.

All information concerning the identity and capacity of the subscriber must be noted in a register which must be kept under the conditions described in Article 10.

ARTICLE 7 All information and documents concerning transactions involving gold, silver, platinum or any other precious metal, such as the type, number, weight and title concerning materials and works in gold, silver, platinum or any other precious metal, purchased or sold, as well as the names and addresses of persons that have sold them, and those on behalf of whom the persons described in Article 1 have purchased them, must be entered on a register kept under the conditions described in Article 10.

All information and documents concerning bureau de change operations whose total amount reaches or exceeds a sum fixed by Sovereign Order must be entered in a register kept under the conditions described in Article 10. This information includes the client’s identity, the nature of the operation, the currency or currencies involved, the amount changed and the rate applied.

ARTICLE 8 The organizations and persons described in Articles 1 and 2 are not subject to the obligations laid down in Articles 3 to 5 if the client is: - an organization or person as described in points 1 and 2 of Article 1; - a credit or financial institution established in a State where the legislation includes provisions

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which are considered to be equivalent to those of this Act and which is subject to surveillance concerning compliance with these obligations; - a listed company whose shares are traded on a regulated market which is established in a State in which legislation includes provisions that are considered to be equivalent to those of this Act and which are subject to surveillance concerning compliance with these obligations; - a national public authority.

To this end, they shall collect sufficient information in all circumstances in order to establish whether the client fulfils these conditions.

The provisions of the first paragraph shall not apply if there is a suspicion of money laundering, terrorist financing or corruption.

CHAPTER III OBLIGATIONS CONCERNING INTERNAL ORGANIZATION ARTICLE 9 The organizations and persons described in Articles 1 and 2 shall take the specific and adequate steps necessary to counter the increased risk of money laundering, terrorist financing and corruption that exists when they form business relations or perform a transaction with a client who is not physically present for identification purposes, in particular in the case of the use of new technologies.

The regulations for the application of the obligations described in this Article shall be determined by Sovereign Order.

ARTICLE 10

The organizations and persons described in Articles 1 and 2 are required to: - keep for at least five years, after ending relations with regular or occasional clients as described in Article 3, a copy of all substantiating documents which were subsequently used for identification and to check identity, as well as all documents collected that allowed the identification described in Article 5 to be carried out; - keep, for a period of at least five years as from the performance of operations, a copy of

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recordings, accounting books, commercial correspondence and documents concerning the operations carried out so as to be able to precisely reconstitute them; - record operations carried out so as to be able to meet requests for information as described in Article 27, within the prescribed times; - be able to respond quickly and fully to any request for information from the Service d’Information et de Contrôle sur les Circuits Financiers for the purposes of determining whether they have or have had a business relationship with a given natural or legal person in the course of the last five years and the nature of these relations.

The Service d’Information et de Contrôle sur les Circuits Financiers may request periods for the storage of information to be extended as part of an investigation in progress.

ARTICLE 11 The organizations and persons described in Articles 1 and 2 are required to submit for particular examination any operation that they consider as particularly likely, through their type or complex or unusual nature with regard to clients’ activities or through the absence of business justification or an apparently legal purpose, to be related to money laundering, terrorist financing or corruption.

This examination shall be carried out according to an assessment of the risk associated with the type of client, the business relationship, the product or transaction. These organizations and persons must be able to prove to the monitoring authorities designated in Chapter VII that the scope of the measures is appropriate in view of the risks of money laundering, terrorist financing or corruption.

They shall establish a written report on the results of this examination of the origin and destination of the sums and the purpose of the operation and its beneficiary; this report and all documents relating to the operation shall be sent to the persons described in Article 13 for the purpose of being stored for the period laid down in Article 10 and made available to the Service d’Information et de Contrôle sur les Circuits Financiers.

The measures laid down in this Article also apply to operations involving a counterpart who has links with a State or territory whose legislation is recognized as insufficient or whose practices are considered as an obstacle to the fight against money laundering, terrorist financing or corruption.

A Ministerial Order shall determine the States or territories concerned as well as the minimum amount for these operations.

ARTICLE 12

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The organizations and persons described in Articles 1 and 2 shall take the appropriate measures to train their employees and make those employees who are concerned by the provisions of this Act aware of them. These measures may include the participation of interested parties in special programmes to make them aware of operations and facts which could be related to money laundering, terrorist financing or corruption and to instruct them on the way in which they should proceed in such cases.

ARTICLE 13 The organizations and persons described in Article 1 having a number of employees above a threshold set by Sovereign Order shall designate, within their organization, one or several persons to be responsible for the application of this Act, whose identities they shall communicate to the Service d’Information et de Contrôle sur les Circuits Financiers.

These persons, exercising their profession in the Principality, shall mainly be responsible for establishing procedures for internal monitoring, communication and centralization of information, in order to avoid, identify and prevent the carrying out of operations related to money laundering, terrorist financing or corruption.

The organizations and persons described in Article 1 that do not meet the conditions described in the first paragraph of this Article, as well as the persons described in Article 2 are also required to equip themselves with procedures for internal monitoring, communication and centralization of information, in order to avoid, identify and prevent the carrying out of operations related to money laundering, terrorist financing or corruption.

Internal monitoring procedures shall specifically take into account the increased risk of money laundering, terrorist financing or corruption in the case of remote operations as described in Article 9.

A copy of the procedures described in the paragraphs above, in the French language, has been sent to the Service d’Information et de Contrôle sur les Circuits Financiers.

The regulations for the application of the obligations described in this Article shall be determined by Sovereign Order.

CHAPTER IV ON THE LIMITATION OF CASH PAYMENTS ARTICLE 14

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The retail sale price of an article whose total value reaches or exceeds an amount of 30 000 euros may not be paid in cash.

CHAPTER V CONCERNING THE SERVICE D’INFORMATION ET DE CONTROLE SUR LES CIRCUITS FINANCIERS

ARTICLE 15 The Service d’Information et de Contrôle sur les Circuits Financiers is the national central authority responsible for collecting, analyzing and disseminating information related to the fight against money laundering, terrorist financing and corruption.

In this capacity, it is responsible for receiving, analyzing and processing declarations sent by the organizations and persons covered by Article 1 and point 3 of Article 2, pursuant to the provisions of Chapter VI. The Department is responsible, subject to reciprocity, for answering requests for information from foreign authorities exercising similar powers, as long as the latter are subject to the same obligations of professional confidentiality and provided that the information supplied cannot be used for other purposes than the fight against money laundering, terrorist financing and corruption.

The powers of the Department shall be determined by Sovereign Order.

ARTICLE 16 The Service d’Information et de Contrôle sur les Circuits Financiers shall examine the declarations and requests mentioned in the previous Article and to this end may request any additional information pursuant to Article 27.

If this examination brings to light serious evidence of money laundering, terrorist financing or corruption, the Department shall establish a report which it will then send to the Public Prosecutor, accompanied by any relevant documents, with the exception of the declaration itself which must under no circumstances be included in the exhibits, subject to the sanctions laid down in Article 308 of the Criminal Code.

When the Department submits the case to the Public Prosecutor, it shall inform the organization or person that made the declaration.

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ARTICLE 17 Agents from the Service d’Information et de Contrôle sur les Circuits Financiers are commissioned and approved for the exercise of their duties. They may not use or divulge information collected as part of these duties to other ends than those prescribed by this Act, subject to the penalties provided for in Article 308 of the Criminal Code.

The Department shall hold detailed statistics and publish an annual report of its activities.

CHAPTER VI ON THE DECLARATION OF SUSPICION ARTICLE 18 The organizations and persons described in Article 1 and point 3 of Article 2 are required to declare to the Service d’Information et de Contrôle sur les Circuits Financiers, considering their activity, all sums held in their accounts and all operations that might be related to money laundering, terrorist financing or corruption.

This declaration, made on the basis of sufficient reason to suspect, must be submitted in writing, before the operation is carried out, and must give details of the facts which constitute the evidence upon which the said organizations or persons have based the declaration. It shall indicate, if applicable, the time within which the operation is to be carried out. If circumstances so require, the declaration may be made in advance by fax or appropriate electronic means.

All information collected subsequent to the declaration and likely to modify its scope must be sent to the Service d’Information et de Contrôle sur les Circuits Financiers without delay.

ARTICLE 19 As soon as the declaration is received, the Service d’Information et de Contrôle sur les Circuits Financiers shall confirm reception thereof.

If, due to the seriousness or urgency of the case, the Service d’Information et de Contrôle sur les Circuits Financiers considers it necessary, it may oppose the carrying out of any operation for the client concerned by the declaration.

This opposition shall be notified in writing or, failing this, by fax or appropriate electronic means, before the expiry of the period described in the previous Article. It can block any operation for a maximum period of three working days as from the notification.

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If no notification of opposition is made within the prescribed period, the organization or person concerned is free to carry out the operation.

ARTICLE 20 The effects of opposition may be extended beyond the legal period by order of the Presiding Judge of the Court of First Instance upon request from the Public Prosecutor, to whom the Service d’Information et de Contrôle sur les Circuits Financiers has referred the case pursuant to Articles 851 and 852 of the Code of Civil Procedure. SICCFIN can, for any precautionary purposes, impound the funds, titles or items concerned by the declaration.

The order is immediately enforceable following its registration, or even before this formality has been accomplished if the Presiding Judge of the Court of First Instance orders this exceptionally for reasons of urgency.

The organizations or persons described in Article 1 holding the funds, titles or items covered by the interim measure are responsible for their legal custodianship.

If the operation is not subject to opposition, the directors or employees of financial organizations cannot, except in cases of fraudulent consultation with the owner of the funds or the originator of the operation, be prosecuted for offences described in Act 890 of 1 July 1970 on drugs and Articles 218-2 and 339 of the Criminal Code.

ARTICLE 21 If the organizations or persons described in Article 1 know or suspect that an operation is related to money laundering, terrorist financing or corruption, but cannot make the declarations laid down in Article 18 before performing the operation, either because it cannot be postponed, or because it would be likely to stand in the way of the prosecution of beneficiaries of suspected offences of money laundering, terrorist financing or corruption, these organizations or persons shall make the declaration immediately after having performed the operation.

In this case, they shall also indicate the reason for which the declaration could not be made prior to the operation being carried out.

The provisions of the last paragraph of Article 18 shall be applicable to the obligations contained in this Article.

ARTICLE 22 Apart from in the cases provided for in Articles 18 and 21, when the organizations or persons

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described in Article 1 and point 3 of Article 2 have knowledge of a fact or facts that could be evidence of an offence of money laundering, terrorist financing or corruption, they shall immediately inform the Service d’Information et de Contrôle sur les Circuits Financiers by making a declaration.

They are also under the same obligation if an operation is refused or cannot be carried out through the fault of the client.

This declaration must be made in writing, according to the same procedures as those laid down in Article 18, and give details of the facts constituting the said evidence.

ARTICLE 23 Notaries and bailiffs who, in the exercise of their procession, have knowledge of facts which they know or suspect to be related to money laundering, terrorist financing or corruption are required to inform the Public Prosecutor of this immediately.

The same goes for defense attorneys, lawyers and junior barristers when, in the exercise of the activities listed in point 4 of Article 2, they have knowledge of such facts.

They are however not required to inform the Public Prosecutor if the information on these facts has been received from one of their clients or obtained in this regard during a legal consultation, during the evaluation of the client’s legal situation or in carrying out their duties of defence or representation of the interested party in legal proceedings, or as part of advice concerning the way in which legal action should be undertaken, carried out or avoided, whether this information is received or obtained before, during or after proceedings relating thereto.

The Public Prosecutor shall inform the Service d’Information et de Contrôle sur les Circuits Financiers of facts that are notified to him or her in this way.

ARTICLE 24 The obligations for declarations laid down in this Chapter may be extended to operations and facts concerning natural or legal persons domiciled, registered or established in a State or territory whose legislation is recognized as insufficient or whose practices are considered as an obstacle to the fight against money laundering, terrorist financing or corruption.

A Ministerial Order shall determine these States or territories as well as the facts, type and minimum amount of operations concerned.

ARTICLE 25

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Declarations and the sending of information pursuant to this Chapter are to be carried out, according to the case, by a designated person or persons within organizations or persons covered

by Article 1, pursuant to Article 13, or by the persons described in Article 2.

The rules concerning the procedures for these declarations and transmissions shall be fixed, in particular with regard to their form and content, by Ministerial Order.

ARTICLE 26 The persons described in Article 1, whose registered office is located in the Principality and who have a branch or subsidiary abroad, must ensure that the latter complies with measures that are at least equivalent to the provisions of this Act, and communicate to it the relevant measures and procedures to this effect.

If foreign legislation is an obstacle to the application of such measures or procedures, they must inform the Service d’Information et de Contrôle sur les Circuits Financiers of this.

These persons may not open a branch or local office domiciled, registered or established in once of the States or territories designated by Ministerial Order in application of Article 24, nor acquire or create, directly or indirectly, a subsidiary carrying out the activities of a credit establishment, investment company or insurance company domiciled, registered or established in one of these States or territories.

ARTICLE 27 For the purposes of applying this Act, the Service d’Information et de Contrôle sur les Circuits Financiers may require any information in the possession of the following persons and organizations to be sent to it by those persons and organizations as soon as possible: 1°) any organization or person described in Articles 1 and 2; 2°) police departments, in particular concerning information of a legal nature; 3°) other State Departments; 4°) the Public Prosecutor; 5°) national organizations carrying out monitoring activities.

Legal authorities, police departments, monitoring authorities and other Departments of the State may send any information that they consider useful to the fulfilment of its mission to the Service

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d’Information et de Contrôle sur les Circuits Financiers.

The Public Prosecutor shall inform the Department of decisions, rulings and orders of dismissal made following the sending of the reports described in Article 16.

ARTICLE 28 Subject to reciprocity and on condition that no criminal action has already been instigated before the Monegasque authorities for the same facts, the Service d’Information et de Contrôle sur les Circuits Financiers can communicate to the central foreign authorities in charge of the fight against money laundering, terrorist financing and corruption information concerning operations that would seem to be related thereto.

No information is to be communicated if these authorities are not subject to the obligations of professional confidentiality that are equivalent to those to which the Department is legally bound or do not present sufficient guarantees that the information provided cannot be used for other purposes than the fight against money laundering, terrorist financing and corruption.

As part of the analysis of the declarations described in the 2nd paragraph of Article 15, the Department may request any additional information that is required to accomplish its mission with regard to these foreign counterparts.

ARTICLE 29 A declaration made in good faith by virtue of this Chapter may not be subject to prosecution on the basis of Article 308 of the Criminal Code.

No civil liability action may be initiated and no professional sanction pronounced against an organization, person or entity described in Articles 1 or 2, its directors or authorized employees who make such a declaration of good faith.

These provisions are applicable even when the proof of the punishable nature of the facts that have led to the declaration has not been provided or when these facts have been subject to dismissal, discharge or acquittal.

ARTICLE 30 The prohibition described in Article 43 does not prevent disclosure between the organizations and persons described in the 1st and 2nd points of Article 1, whether established in the Principality or in a third State, either:

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- if they belong to the same group; - in cases concerning the same client and the same operation involving at least two establishments.

In this case, these organizations and persons must belong to the same professional category and be subject to equivalent obligations in terms of professional confidentiality and personal data protection.

Persons established in the third country must fulfil the conditions fixed in 2nd item of paragraph 1 of Article 8.

Information exchanged is to be used exclusively to the ends of prevention of money laundering, terrorist financing and corruption.

CHAPTER VII MONITORING AUTHORITIES ARTICLE 31 Monitoring of the application of Chapters II, III and VI and the measures taken for their performance by the persons described in Article 1 and point 3 of Article 2 is to be carried out by specially commissioned and approved agents of the Service d’Information et de Contrôle sur les Circuits Financiers.

The procedures for this monitoring shall be determined by Sovereign Order.

The Service d’Information et de Contrôle sur les Circuits Financiers may be assisted by an expert bound to professional secrecy according to the provisions of Article 308 of the Criminal Code who officially swears to uphold them.

The agents of the said Department have powers which are identical to those bestowed upon commissioned and approved agents of the Department of Economic and Financial Investigations by Articles 18 and 19 of Act 1144 of 26 July 1991 concerning the exercise of certain economic and legal activities.

ARTICLE 32 Monitoring of the application of Chapters II, III and VI and the measures taken for their performance by notaries, bailiffs, defense attorneys, lawyers and junior barristers is to be carried out by the Public Prosecutor who may be assisted by agents of the Service d’Information et de Contrôle sur les Circuits Financiers.

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ARTICLE 33 The persons described in points 3 to 5 and 7 to 15 of Article 1 are required to have an annual report established by a chartered accountant or an approved accountant listed on the official register so as to evaluate the application of this Act and the measures taken for its enforcement.

Without prejudice to the provisions of Article 31, joint stock companies and sole traders whose turnover and number of employees are less than a threshold set by Sovereign Order are exempt from the obligation laid down in the above paragraph.

A copy of this report is to be sent to the Service d’Information et de Contrôle sur les Circuits Financiers and to the management of these persons.

ARTICLE 34 Within the scope of the application of this Chapter, the Service d’Information et de Contrôle sur les Circuits Financiers may cooperate and exchange information with foreign departments or national organizations fulfilling monitoring activities.

This cooperation is only possible subject to reciprocity and if these entities are subject to obligations of professional secrecy that are similar to those of the Department with regard to the fulfilment of their duties and present sufficient guarantees that the information provided cannot be used for other purposes than the fight against money laundering, terrorist financing and corruption.

CHAPTER VIII CROSS-BORDER TRANSPORT OF CASH AND BEARER INSTRUMENTS ARTICLE 35

All natural persons entering or leaving the territory of the Principality in possession of cash or bearer instruments whose total amount is more than an amount fixed by Sovereign Order must, on request from the monitoring authority, make a declaration using the form established for this purpose.

The following are considered as bearer instruments within the meaning of this Act: - negotiable bearer instruments such as travellers’ cheques; - other negotiable instruments, including cheques, promissory notes and money orders, which are: ·endorsable without restrictions;

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· established to the order of a fictitious beneficiary or presented in a form which allows ownership of the instrument to be transferred when it changes hands;

-incomplete instruments, including cheques, promissory notes and money orders, which are signed but upon which the name of the beneficiary has not been indicated.

The monitoring authority and the content of the form mentioned in the first paragraph shall be determined by Sovereign Order.

ARTICLE 36 The monitoring authority shall send the declarations described in this Chapter to the Service d’Information et de Contrôle sur les Circuits Financiers that will record them, process them and establish statistics relating thereto.

ARTICLE 37 Agents of the monitoring authority shall be responsible for collecting and checking the declarations on site.

They may not use the declarations for other purposes than those laid down in this Act, subject to the penalties provided for in Article 308 of the Criminal Code.

If there is evidence leading to a suspicion that a declaration is fraudulent or that the cash or bearer instruments declared are related to money laundering, terrorist financing or corruption, these agents may require documents to be presented to establish the identity of the natural persons concerned and subject these persons, their luggage and means of transport to checking measures.

ARTICLE 38 In the case of a false declaration or if the mandatory obligation has been satisfied but that there is evidence as specified in the previous Article, the cash or bearer instruments are to be retained by the monitoring authority that shall establish a statement to be sent to the competent legal authorities, and a copy of which shall be sent to the Service d’Information et de Contrôle sur les Circuits Financiers.

The duration of this withholding may not exceed 14 calendar days. At the end of this period, the cash or bearer instruments are to be returned to the natural person who was transporting them without prejudice to the possibility of subsequent seizure by legal authorities.

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CHAPTER IX PENALTIES Section I Administrative penalties ARTICLE 39

Without prejudice to legal penalties, the disregard, by the persons described in the first Article of the provisions of this Act and its implementing provisions is liable to a warning delivered by a Decision of the Director of the Service d’Information et de Contrôle sur les Circuits Financiers.

In a case of serious infringement of these obligations, the Service d’Information et de Contrôle sur les Circuits Financiers may submit the case to the Minister of State in order to have one of the following penalties ordered against the party in breach: - a reprimand; - a pecuniary penalty which is proportional to the seriousness of the infringement and the maximum amount of which cannot exceed one and a half million euros, - be prohibited to carry out certain operations; - temporary suspension of their authorization to exercise their profession; - the withdrawal of this authorization.

Prior to any decision concerning penalties, the interested party must be informed, in writing, of the claims made against them and their explanations heard, or be duly called to provide such explanations, by the Service d’Information et de Contrôle sur les Circuits Financiers. At this hearing, they may be assisted by an advisor of their choice. Their explanations shall be included in a report established by the said Department.

Any penalties delivered by virtue of this Article, with the exception of the warning, may be published in the Journal de Monaco.

Criminal proceedings in progress that have not led to a final legal decision do not represent an obstacle to the application of this Article.

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Section II Criminal penalties ARTICLE 40

Any person who provides or tries to provide an obstacle to the controls exercised by virtue of Articles 31 and 32 shall be punished by imprisonment for one to six months and by a fine as described in point 2 of Article 26 of the Criminal Code or only one of these two penalties.

ARTICLE 41 Any person who, through disregard for the professional obligations of due diligence to which they are subject under this Act, contravenes the provisions of Articles 18 to 24, shall be punished by the fine laid down in point 3 of Article 26 of the Criminal Code.

Any person who contravenes the provisions of Articles 6, 7 and 10 shall be punished by the fine laid down in point 2 of Article 26 of the Criminal Code.

ARTICLE 42 Any person who contravenes the mandatory declaration described in Article 35 shall be punished by a fine equal to one quarter of the sum concerned by the offence or attempted offence, without prejudice to any seizure and confiscation of the cash or bearer instruments concerned, delivered under the conditions laid down in Article 12 of the Criminal Code.

ARTICLE 43 Directors or employees of financial organizations shall be punished by the fine stated in point 4 of Article 26 of the Criminal Code if they have: - knowingly informed the owner of the sums, the originator of one of the operations, or a third party of the existence of the declaration or the sending of information as stated in Chapter VI; - disclosed to any party information concerning action taken as a result of the declaration.

ARTICLE 44 The provisions of Article 218, 1째 of the Criminal Code are repealed and replaced by the following

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provisions: “1° The following shall be punished by a period of imprisonment of five to ten years and the fine laid down in point 4 of Article 26, the maximum amount of which may be increased tenfold: - any person who has knowingly lent their assistance to the conversion or transfer of property in the knowledge that it is property or capital of illicit origin, with the aim of dissimulating or disguising the origin of the said property or of assisting any person involved in the committing of the main offence in escaping the legal consequences of their actions; - any person who has knowingly participated in the dissimulation or disguising of the true nature, origin, location, disposal, movement or ownership of property or rights relating thereto where the originator knows that it is property or capital of illicit origin.

- any person who has knowingly acquired, retained or used property or capital knowing, at the time when they received it, that it was property or capital of illicit origin, without prejudice to legal provisions concerning the handling of stolen goods; - any person who has knowingly participated in one of the offences established in accordance with this Article or in any other association, agreement, attempt or collusion by providing assistance, help or advice with a view to committing the offence.

The intentional element of an offence as stated hereinabove may be deduced from objective factual circumstances.”

ARTICLE 45 The provisions of Article 219, 1° of the Criminal Code are repealed and replaced by the following provisions: “The Court shall order the confiscation of property and capital of illicit origin or property and capital the value of which corresponds to that of property and capital of illicit origin.

It may order the confiscation of movable assets or property acquired through the use of these funds.

If the property and capital of illicit origin has been combined with legitimately acquired property, this property may be confiscated up to the estimated value of the assets with which it has been combined.

If the property and capital of illicit origin cannot or can no longer be found as such as part of the property of the person found guilty of this offence, the Court may order the confiscation of property

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and capital of a value which is equivalent to that of the property and capital of illicit origin.

Property and capital of illicit origin may also be confiscated when it is held by a third party that knows or should know of its illicit origin.

Confiscation may be pronounced without prejudice to the rights of third parties.

The Public Prosecutor shall complete the required formalities of registration and publication.”

ARTICLE 46 Attempted offences as described by this Act shall be punished by the same penalties as the offences themselves.

CHAPTER X MISCELLANEOUS PROVISIONS ARTICLE 47 The following is to be added to the second paragraph of Article 17 of Act 1338 of 7 September 2007 on financial activities; “Exchange of information may also take place with the national central authority responsible for the fight against money laundering, terrorist financing and corruption under the same conditions.”

ARTICLE 48 The provisions of Article 8 of Act 1144 of 26 July 1991 are repealed and replaced by the following provisions: “The provisions of this section are also applicable to natural persons of Monegasque nationality who intend to carry out activities for remuneration whatever their form, of banking or credit, bureau de change, transfer of funds, advice or assistance in the legal, financial or stock market fields as well as brokerage or management of portfolios or asset management with power of attorney, they apply to the same persons associated to one of the companies described in Article 4 and whose purpose is the exercise of these activities.”

ARTICLE 49 The conditions and regulations for the application of this Act shall be determined by Sovereign Order.

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Act 1162 of 7 July 1993 on the participation of financial organizations in the fight against money laundering and terrorist financing, amended, as well as all provisions contrary to this Act and its implementing provisions are hereby repealed.

In all Acts or regulations in force, references to the provisions of Act 1162 of 7 July 1993 described hereinabove shall be replaced, if applicable, by references to the provisions of this Act.

This Act is promulgated and shall be enforced as a law of the State.

Done at Our Palace in Monaco on the third of August two thousand and nine.

ALBERT. By the Prince, The Secretary of State: J. BOISSON. Last updated: April 1, 2011 (11:59) - Copyright © 2011 Service Informatique du Ministère d'Etat - www.gouv.mc

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