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Monaco’s AI Portal Simplifies Reporting Obligations for Financial Institutions

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The Government of Monaco has launched an Artificial Intelligence (AI) portal, eai.gouv.mc, designed to streamline the automatic exchange of information process for financial institutions. The platform aims to simplify the reporting obligations for these entities, making it easier for them to comply with international standards.

Special Cases: Management Companies and Trusts

Under the Common Reporting Standard (CRS), management companies are exempt from reporting obligations as they do not typically hold accounts. However, trusts may fall under various categories of entity depending on their activities. Financial institutions must follow specific due diligence procedures to identify reportable accounts held by individuals or entities.

Reported Persons and Financial Accounts

Financial institutions must report accounts held by individuals, some entities, and certain investment vehicles, including trusts and non-trading companies. Low-risk accounts specifically excluded in Monaco include:

  • Retirement and pension accounts
  • Tax-favoured accounts
  • Temporary life insurance policies
  • Estate accounts
  • Escrow accounts

Due Diligence Process

Reporting financial institutions must follow a solid body of due diligence procedures to identify reportable accounts and obtain required identification information from account holders. The process distinguishes between:

  • Accounts held by individuals
  • Entity accounts
  • Pre-existing and new accounts

Tax Identification Number and Reporting Process

Financial institutions must report tax identification numbers for:

  • New accounts opened after 2017
  • Pre-existing accounts that have been subject to self-certification requests

For other pre-existing accounts, evidence of reasonable efforts to obtain the tax identification number must be provided.

Reporting Platform

The reporting platform allows financial institutions to submit information in a secure XML schema format on an annual basis. The global reporting process includes:

  • Submitting reports to partner jurisdictions
  • Compulsory nil reports for jurisdictions with no declarable financial accounts

User Guide and Schema Template

A user guide and schema template are available for download, providing professionals involved in the process with detailed instructions on how to use the platform and prepare information for sharing under automatic exchange.