Pubdate: Wed, 11 Oct 2000
Source: Irish Independent (Ireland)
Copyright: Independent Newspapers (Ireland) Ltd
Contact:  http://www.independent.ie/
Author: John Lichfield

FRANCE WARNS MONACO ON 'DIRTY MONEY'

Relations between France and Monaco, the tiny country on its southern 
coast, plunged to their lowest ebb in 38 years yesterday.

The French government threatened to tear up all its political, economic and 
administrative agreements with Monaco, unless it took steps to control the 
influx of "dirty'' money from drug-trafficking and organised crime.

The threat, although based on real international concerns about Monaco's 
involvement in money-laundering, creates a bizarre state of affairs. Monaco 
is largely administered by French officials.

At a press conference yesterday, the chief minister of Monaco, Patrick 
Leclercq, angrily rejected the allegations made earlier in a report from 
the French finance ministry.

It said the tiny state's legislation against money-laundering had "serious 
gaps'' and that there were ``large discrepancies between (banking) law and 
reality'' in Monaco.

Efforts to investigate by French magistrates had been impeded by the Monaco 
authorities, the report said.
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