Financial Crime World

Monaco Strengthens Commitment to Tax Transparency with Compliance Frameworks

The Principality of Monaco has made significant strides in adopting international agreements aimed at promoting tax transparency and automatic exchange of information. This effort is part of the country’s commitment to enhancing its reputation as a responsible financial hub.

International Agreements

Monaco’s membership in the Organisation for Economic Cooperation and Development (OECD) has driven its efforts in combating tax evasion and avoidance. Key conventions signed by Monaco include:

  • Convention on Mutual Administrative Assistance in Tax Matters (2014)
  • Multilateral Competent Authority Agreement concerning the Automatic Exchange of Financial Account Information (MCAA OECD) (2015)
  • Protocol amending the Agreement between the European Community and the Principality of Monaco providing for measures equivalent to those contained in the Council Directive 2003/48/EC (2016)

Domestic Implementation

To ensure effective implementation of these agreements, the Monegasque authorities have transposed their provisions into domestic law through a series of acts and decrees. These include:

  • Act No. 1.436, No. 1.437 and No. 1.438 (2016) accompanied by applicable Sovereign Orders and Ministerial Decrees

Automatic Exchange of Tax Information

The first automatic exchanges of information were successfully completed by June 30th, 2018, covering declarable data for the year 2017. These exchanges have since become an annual occurrence, with Monaco expanding its network of Reportable Jurisdictions.

Reportable Jurisdictions

Monaco’s list of Reportable Jurisdictions now stands at several dozen countries, demonstrating its commitment to tax compliance and transparency.

Conclusion

Monaco’s participation in the international movement for transparency and tax compliance has solidified its position as a responsible and cooperative financial center. The country’s efforts have been recognized, and it continues to strengthen its reputation as a key player in the global financial community.