Monaco accounts linked to Putin ally's sanctions evasion
By Zak Jackson, MonacoViews Editorial
An investigation has uncovered Monaco bank accounts allegedly used by Russian Duma vice-president Alexandre Babakov to evade Western sanctions.
An investigation by Nice Matin has detailed how Alexandre Babakov, vice-president of the Russian State Duma and a vocal critic of Western policy, built a financial network stretching from Monaco to Saint-Tropez despite being under EU and US sanctions since the invasion of Ukraine. The report describes a structure of shell companies and family members acting as nominees, allowing funds to move through accounts and assets on the Côte d'Azur while concealing the true beneficiary.
Among the assets identified is a villa in Saint-Tropez, reportedly financed through transactions routed via accounts held in Monaco. The use of relatives as front names for ownership is said to have allowed Babakov to maintain access to Western luxury property and banking services despite restrictions designed to cut sanctioned Russian officials off from the European financial system.
For Monaco, the case lands at a sensitive moment. The Principality has spent recent years tightening its anti-money laundering framework after being placed on the Financial Action Task Force's grey list in 2024, with banks and fiduciary firms facing closer scrutiny over beneficial ownership disclosures. A case involving a sitting Russian parliamentarian allegedly using Monaco accounts to circumvent sanctions will renew questions over how thoroughly those checks are being applied to politically exposed clients, and adds pressure on local financial institutions already working to demonstrate compliance to international regulators.