Monaco Strengthens International Anti-Fraud Tax Policy

The Principality of Monaco has taken a significant step forward in its commitment to international anti-fraud tax policy with the signing of the Multilateral Competent Authority Agreement for the Automatic Exchange of Financial Account Information.

Automatic Exchange of Financial Account Information

The agreement, which took effect on January 1, 2017, requires Monaco to automatically exchange information on financial accounts with other countries. This move is part of Monaco’s ongoing efforts to increase transparency and implement international standards developed by the European Union and the Organization for Economic Cooperation and Development (OECD).

Implementation Details

• Monaco will begin exchanging information in 2018, based on data collected in 2017.
• The information will be exchanged annually with EU member states, covering reportable accounts held in Monaco and those held by EU residents in Monaco.

Monaco’s Commitment to Transparency

Monaco’s commitment to transparency is also reflected in its recent ratification of the Amending Protocol to the Agreement between the European Community and the Principality of Monaco providing equivalent measures to those of the Council Directive 2003/48/CE. The protocol, signed on July 12, 2016, brings Monaco’s tax agreement with the EU into line with the common reporting standard.

Key Highlights

• Monaco does not appear on any EU “lists” of non-cooperative tax jurisdictions.
• Monaco has committed to implementing all compulsory measures of the OECD’s Base Erosion and Profit Shifting (BEPS) project.
• The Principality has signed the Multilateral Convention for the Implementation of Measures on Tax Conventions to Prevent BEPS and the Multilateral Agreement between Competent Authorities on the exchange of country-by-country declarations.

Implementation of BEPS Project

To meet its obligations under Action 13 of the BEPS project, Monaco has put in place a legal framework, including three sovereign orders that regulate the reporting requirement for entities with a total consolidated group turnover of €750 million or more.

Key Commitments

• Monaco is part of an inclusive framework on BEPS, which brings together 100 countries and jurisdictions to implement the measures resulting from the OECD-G20 project.
• The Principality is committed to increasing transparency and cooperation with other countries.

Additional Resources

For more information on Monaco’s efforts to combat tax evasion and promote international cooperation, please consult the following sources:

• Multilateral Competent Authority Agreement for the Automatic Exchange of Financial Account Information
• Amending Protocol to the Agreement between the European Community and the Principality of Monaco providing equivalent measures to those of the Council Directive 2003/48/CE
• Multilateral Convention for the Implementation of Measures on Tax Conventions to Prevent BEPS
• Multilateral Agreement between Competent Authorities on the exchange of country-by-country declarations