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Monaco Banking Compliance Updates 2023: New Duties, Responsibilities, and Sanctions Emerge
In an effort to combat fraud and enhance anti-money laundering measures, Monaco has introduced new laws that have far-reaching implications for companies, foundations, and associations. Laws No 1.449 and 1.550 of July 14, 2023, and August 10, 2023, respectively, have created new categories of “actors” responsible for collecting, transmitting, and retaining essential information on legal entities and individuals.
New Categories of Actors
Under the new regulations, companies must maintain detailed records of their beneficial owners, shareholders, and partners for a period of ten years. A “Basic Information Officer” may be appointed internally or externally to collect this information, which can include:
- Lawyers
- Notaries
- Multi Family Offices
- Other professionals
Responsibilities and Duties
The responsible person, often referred to as an “Officer,” will also be accountable for other duties, such as:
- Alerts
- Data protection compliance
Senior executives and board members will face increased scrutiny and must demonstrate evidence of fulfilling their responsibilities regarding basic information and beneficial owner declarations.
Consequences of Non-Compliance
Liability for non-compliance is severe, with penalties ranging from EUR 100,000 to criminal sanctions, including:
- Imprisonment
- Fines
The Monegasque Financial Security Authority, Business Development Agency, and Ministry of Interior are empowered to impose these sanctions.
Practical Consequences
The creation of new functions has set in motion a new process of responsibility regarding the creation, change, or cessation of an activity in the Principality. This includes:
- Increased duties and responsibilities for existing actors, such as Compliance Officers
- Liquidators of commercial or civil companies established in Monaco may face criminal sanctions if they fail to properly retain information during the liquidation process
Future Developments
Major future developments will be detailed in implementing legislation, but it is clear that the new regulations mark a significant shift towards greater transparency and accountability in Monaco’s banking sector.