FATCA Compliance Requirements for Financial Institutions in Monaco

Complex Regulatory Environment

As a foreign financial institution under the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS), financial institutions in Monaco are required to meticulously adhere to strict regulations to ensure compliance. This includes identifying account holders, including offshore companies and trusts that qualify as financial institutions.

Compliance Options for Financial Institutions

Financial institutions in Monaco can choose to perform these tasks themselves or outsource them to a sponsor or external service provider. Geneva Compliance Group offers its services, providing a comprehensive review of the entity’s beneficial owners to determine their US/non-US character and tax residence.

Annual Mapping Exercise

Once onboarded, Geneva Compliance Group performs an annual mapping exercise to monitor regulatory developments and updates agreements activated between jurisdictions as part of the automatic exchange of information. If a FATCA or CRS declaration is necessary due to the presence of a US person or EAR declaration subject, the group requests relevant information from the contact person and formats it for submission.

FATCA Sponsorship Service

In addition, Geneva Compliance Group offers a FATCA sponsorship service that allows financial institutions to benefit from the status of Sponsored closely held investment vehicle. The company acts as Sponsor, providing its GIIN (Global Intermediary Identification Number), conducting due diligence on beneficiary and controlling individuals, and undertaking tax reporting if applicable.

Secure IT Solution

The group’s IT solution is built on an ISO 27001 compliant infrastructure, ensuring strong authentication and encrypted communication to maintain the highest level of security.

Expert Guidance for Financial Institutions in Monaco

Financial institutions in Monaco seeking assistance with FATCA compliance requirements are urged to contact Geneva Compliance Group for expert guidance.