Financial Crime World

Here is the rewritten article in Markdown format:

Regulatory Compliance Checklist in Monaco

======================================================

As a financial institution operating in Monaco, it’s essential to stay up-to-date with the country’s regulatory framework and compliance requirements. In this comprehensive guide, we’ll outline the key policies, laws, and regulations that govern the banking sector in Monaco.

Regulatory Framework

The Monegasque banking sector is subject to three main sources of regulation:

  • The French Banking Regulation Committee (CRB)
  • The French Banking Supervision Authority (ACPR)
  • The Monetary Policy Council (CCIN)

The CRB sets general guidelines for banks, while the ACPR supervises and regulates bank activities. The CCIN is responsible for monetary policy and banking supervision.

Banking Activity Licensing

To operate a bank in Monaco, you must obtain a license from the ACPR. This involves:

  • Meeting specific capital requirements
  • Demonstrating satisfactory financial resources
  • Providing detailed information about your business plan and organizational structure

Key Requirements

  • Capital requirements
  • Financial resource demonstration
  • Business plan and organizational structure submission

Consumer Protection

While there are no specific consumer protection rules applicable to banks under Monegasque law, credit institutions have a duty of:

  • Information
  • Advice when dealing with non-professional clients

Additionally, cross-border activities can trigger the application of foreign consumer public policy rules under certain conditions.

Key Takeaways

  • No specific consumer protection rules for banks under Monegasque law
  • Duty of information and advice for credit institutions
  • Cross-border activities may trigger foreign consumer public policy rules

Anti-Money Laundering (AML) Requirements

The Monegasque government has strengthened its AML legislation in recent years, including:

  • Widening the scope of the law
  • Tightening identification and vigilance obligations
  • Creating a new register of banking accounts

Banks must implement these requirements and disclose information about banking accounts held in their books to the AML Regulator, the SICCFIN.

Key Requirements

  • Implement AML requirements
  • Disclose information about banking accounts held in books
  • Identification and vigilance obligations

Deposit Insurance

The Monegasque government has no duty to insure deposits, but banks are affiliated with the French Deposit Guarantee and Resolution Fund (FGDR). The FGDR indemnifies depositors and investors up to a maximum limit of:

  • €100,000 per depositor for repayable funds
  • €70,000 per investor for securities

Key Takeaways

  • No duty to insure deposits under Monegasque law
  • Affiliation with French Deposit Guarantee and Resolution Fund (FGDR)
  • Maximum limits for deposit insurance

Transactions between Affiliates

There are no specific limitations on transactions between banks and their affiliates under Monegasque law, except for general corporate law rules. Banks can carry out activities ancillary to banking activity, such as:

  • Representation
  • Commissioning
  • Brokerage for subsidiaries

Key Takeaways

  • No specific limitations on transactions between banks and their affiliates
  • General corporate law rules apply
  • Ancillary activities allowed for subsidiaries

Future Changes

The negotiation of an association agreement between Monaco and the European Union is expected to have significant consequences on the domestic legal framework. This could lead to:

  • New competitors entering the Monegasque banking market
  • Changes to the regulatory environment

Key Takeaways

  • Expected changes in regulatory environment due to EU association agreement
  • Potential for new competitors in Monegasque banking market

Date Last Updated

This information is accurate as of 15 February 2021.