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Monaco’s Banking Regulations Get a Major Overhaul: What You Need to Know
A significant bill has been submitted to Monaco’s National Council aimed at amending Law No. 1.338, which sets the foundation for regulating financial activities in the principality. The proposed changes are designed to strengthen the powers of the Comité de Contrôle des Activités Financières (CCAF), particularly when it comes to supervision and investigation on an international level.
New Obligations
The bill introduces several new obligations, including:
- A requirement that banks submit modifications to their license applications - such as changes to shareholding or activities programs - to the CCAF for prior authorization.
- The regulator’s supervision will now extend to all banks, with certain exemptions removed from Article 32 of Law No. 1.338.
Definition of Canvassing
The bill also clarifies the definition of canvassing, which is now defined as:
- Any offering of a financial product or service in Monaco to non-professional individuals.
- Monaco’s financial actors are now subject to the same legal restrictions.
Investor Protection
Another key aspect of the bill is its aim to improve investor protection by establishing new rules for managing conflicts of interest. Licensed entities will be required to:
- Adopt written procedures
- Provide prior information to clients when the risk of conflict cannot be avoided
Data Protection and Registration
Furthermore, all services and transactions will need to be registered in compliance with data protection rules. This may pose an operational challenge, but it is seen as a necessary step to improve and facilitate the supervision of licensed entities by the CCAF.
Reforms to Market Offenses
The bill also proposes reforms to market offenses, which are currently under review by the Commission. With a proposed adoption date before the end of the year, the changes could bring much-needed clarity to Monaco’s financial landscape for professionals.