Monaco Fines Julius Baer Wealth Management €1.5 Million for AML Control Failures

Monaco’s financial security authority has fined Julius Baer Wealth Management (Monaco) S.A.M. €1.5 million after finding weaknesses in its anti-money laundering and counter-terrorist financing controls.

The sanctions panel of the Autorité Monégasque de Sécurité Financière (AMSF) issued its decision on 25 August 2026 following a hearing on 8 July. The decision was published in the Journal de Monaco on 4 September. It followed an on-site inspection conducted from 15 to 31 October 2024.

The AMSF upheld both grievances brought against the wealth manager. The case examined the organisation and oversight of AML/CFT arrangements, including functions performed with Julius Baer Bank (Monaco), as well as the handling of suspicious activity reporting.

At the time of the inspection, Julius Baer Wealth Management (Monaco) had 25 employees and 908 client accounts. The decision said 44.1% of its clients were classified as high or very high risk, while 91.2% of client accounts were deposited with Julius Baer Bank (Monaco).

The regulator found that parts of the AML/CFT framework were not sufficiently adapted to the risks of the client base. Transaction-monitoring arrangements included uniform cash thresholds rather than thresholds tailored to factors such as customer risk, politically exposed person status and geographic exposure. The decision cited a highest-risk client who made six cash withdrawals totalling €91,000 over 90 days.

The AMSF also identified delays in suspicious transaction reporting. Examples in the decision included a report filed 393 days after suspicion had been established, a €5 million incoming transfer where source documentation was considered inadequate, and payments of £12,000 and £8,800 that were reported 239 days after the first transaction.

The €1.5 million sanction will be published in named form for three years before remaining available in anonymised form. The decision may be appealed before Monaco’s Court of First Instance within two months of notification.

The case reinforces the importance of risk-based transaction monitoring and effective oversight where AML/CFT functions are delegated or shared within a financial group. Reliance on group infrastructure does not remove the regulated entity’s responsibility for its own controls and reporting decisions.