Prince Rainier "Saddened" At Money Laundering Slur, Calls For Monaco To Break With France

Jason Gorringe, Tax-news.com, Paris

01 November 2000

In an interview yesterday with French newspaper Le Figaro, Prince Rainier of Monaco said that charges of money laundering and tax evasion levelled against the principality were a personal affront and that he had been hurt and disappointed by allegations contained in a French parliamentary report, published in June, which heavily criticised Monaco as an offshore tax haven and urged the French government to review its associations with the principality. France has since told Monaco to clean up its banking practices or face tough measures.

Prince Rainier echoed the words of his son Prince Albert, who in August categorically denied French accusations that Monaco turns a blind eye to money laundering, slamming the charges as 'not based on established facts but on hypotheses and rumours.' His father, too, wholeheartedly refutes the claims and has branded French efforts an unfair attack against Monaco.

Asked how he felt about the French campaign, Prince Rainier said he was sad to see such views emanating from a country which he believed was always an ally of Monaco. He added that there was an unpleasantness about the French tone and that the accusations seemed to be a deliberate attempt to damage the image of the principality. He also said that he was incensed by the way the French government had gone about its investigations for its report. According to the prince, French officials visited the principality some months ago for talks with key figures, but before these could be concluded, the French parliament was already putting together a press conference to reveal its concerns over Monaco. Prince Rainier said this was stark evidence that the French had already found Monaco guilty before proven innocent, and it was unacceptable.

Denying that Monaco gives money launderers a free rein, Prince Rainier said Monaco had counter-money laundering procedures in place that were of the same standard as any other European country. He also showed extreme cunning in turning the tables on France, saying that if an dirty money was to enter Monaco's banks, it was down to the French, for most of the key legal, fiscal and government roles in Monaco are held by French officials. Moreover, he pointed out that it is the Banque de France which has ultimate responsibility for any new financial institution opening in Monaco: 'It is difficult to see this organisation granting approval to dubious institutions,' he said, adding that French attacks had only one aim - to apportion the blame on Monaco.

Prince Rainier's hostility to France is clear and he himself is of the opinion that the relationship between Monaco and France has deteriorated greatly. He said: 'I believe that there are simply some people in France who are jealous of Monaco's success, its standard of living, its low taxes, its dynamism, and that it is easier to explain this success as a product of money laundering rather than good management on the part of Monaco.' He added that France had no reason to resent Monaco: 'Everything that is good for Monaco is good for France. Monaco's economic dynamism benefits the French greatly: 25,000 of them work in Monaco. French companies are involved in all of Monaco's major projects, including construction. Three quarters of Monaco's wealth passes through French banks.....Paris should look at this situation before pointing the finger at Monaco.'

Prince Rainier concluded: 'Monaco will no longer allow Paris to treat us the way it does. France must respect us. We are a sovereign state. For too long we have accepted limited sovereinty. It is time to dust off the treaties which link us to France. We want our full sovereinty back.'

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