Monaco Compliance Glossary.
Essential KYC/AML-CFT compliance terms used in Monaco. A reference glossary for professionals subject to AMSF obligations.
AMSF
Monaco Financial Security Authority. The supervisory and enforcement authority for anti-money laundering and counter-terrorism financing in Monaco. The AMSF oversees regulated entities, manages the STRIX questionnaire, and handles international cooperation.
CDD (Customer Due Diligence)
Standard due diligence applied to each client at the start of a business relationship. Includes client identification, identity verification, beneficial owner identification, and understanding the purpose and nature of the business relationship.
CO (Compliance Officer)
The compliance officer within a regulated entity. The CO is responsible for the operational implementation of the AML/CFT framework: file review, screening validation, staff training, and reporting to the MLRO.
EDD (Enhanced Due Diligence)
Additional due diligence measures applied to high-risk clients: PEPs, high-risk countries, complex structures, unusual amounts. Includes collecting additional information about the source of funds and wealth, enhanced transaction monitoring, and hierarchical validation.
Dossier (Client File)
The structured collection of information and documents relating to a client under KYC obligations. A file includes identity information, supporting documents, beneficial owners, risk scoring, screening history, and the audit trail.
FATF (Financial Action Task Force)
Intergovernmental organization that sets international standards for combating money laundering and terrorism financing. Publishes lists of high-risk jurisdictions (grey list, black list) and the 40 recommendations that serve as the global reference framework.
Asset Freeze
An administrative or judicial measure prohibiting any movement, transfer, or use of assets held by sanctioned individuals or entities. Regulated entities must verify their clients against asset freeze lists and report any match immediately.
Hit
A positive result from screening against a sanctions list, PEP database, or adverse media source. A hit requires analysis to determine whether it is a true positive or a false positive. Every hit must be documented with a reasoned decision.
KYC (Know Your Customer)
The process of identifying and verifying a client's identity. KYC is a fundamental regulatory obligation that includes collecting identity documents, verifying declared information, identifying beneficial owners, and assessing the risk profile.
AML/CFT (Anti-Money Laundering / Counter-Terrorism Financing)
The legal and regulatory framework imposing due diligence, reporting, and cooperation obligations on regulated entities. In Monaco, the AML/CFT framework is governed primarily by Law 1.362. Known as LCB-FT in French.
Law 1.362
The Monaco law on combating money laundering, terrorism financing, and corruption. The foundational text of Monaco's AML/CFT framework, defining regulated entities, due diligence obligations, reporting procedures, and sanctions.
MLRO (Money Laundering Reporting Officer)
The officer responsible for suspicious activity reporting within a regulated entity. The MLRO is the direct contact with SICCFIN for suspicious activity reports. They supervise the CO and validate AML/CFT decisions. Their appointment is mandatory for certain categories of regulated entities.
PEP (Politically Exposed Person)
A person who holds or has held a prominent public function: head of state, minister, parliamentarian, judge, central bank director, ambassador. PEPs, their close family members, and known associates are subject to mandatory enhanced due diligence.
Screening
Automatic verification of a name against international sanctions lists, PEP databases, asset freeze lists, and adverse media sources. Screening must be performed at onboarding, at every file update, and periodically (rescreening) based on risk level.
SICCFIN
Monaco's Financial Intelligence Unit, equivalent to FinCEN in the US or Tracfin in France. SICCFIN receives suspicious activity reports from regulated entities, analyzes them, and forwards them to judicial authorities when appropriate.
SOF (Source of Funds)
The origin of funds used in a transaction or business relationship. SOF verification is mandatory at onboarding and for unusual transactions. It may require bank statements, contracts, sale deeds, or tax returns.
STRIX
Risk Treatment and Extra-financial Information System. The AMSF's annual questionnaire for assessing the AML/CFT compliance framework of regulated entities. The STRIX covers 5 sections: client risk, products/services, distribution, internal controls, and signatories. See the complete STRIX guide.
STR (Suspicious Transaction Report)
A report filed by a regulated entity with SICCFIN when it identifies a suspicious transaction potentially linked to money laundering or terrorism financing. The report must be submitted before executing the suspicious transaction, except where impossible. The reporting obligation is absolute and non-compliance is criminally sanctioned.
Tenant
A client organization of the conform ia platform. In a multi-tenant architecture, each tenant has an isolated space with its own data, users, and configurations. Isolation is guaranteed by a unique identifier applied to every request.
UBO (Ultimate Beneficial Owner)
The natural person who directly or indirectly owns or controls a legal entity. The ownership threshold triggering identification is generally set at 25%. UBO identification is a fundamental KYC obligation for all legal entities. The complete ownership chain must be documented.
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