Monaco Tightens Know Your Customer (KYC) Regulations for Financial Institutions

Monaco has joined a growing list of countries that have submitted their know-your-customer (KYC) rules to the Internal Revenue Service (IRS), allowing financial institutions operating in the jurisdiction to apply for Qualified Intermediary (QI) status.

Approval Process

According to the IRS, Monaco’s KYC regulations must be approved before entities and branches located in the country can submit their QI applications. The approval process involves reviewing Monaco’s know-your-customer practices and procedures for opening accounts and responses to 18 specific questions listed in the Revenue Procedure 2000-12.

Standardized Attachments

The IRS has developed standardized attachments that list the specific types of KYC documentary evidence required for each approved country, including Monaco. These attachments will be associated with the qualified intermediary agreement sent for signature once a particular attachment is developed for a country.

Submission Guidelines

Entities and branches located in Monaco may submit their QI applications if the country’s KYC rules are on the approved list. Qualified intermediaries may suggest amendments to the attachment but departures from the standardized attachment may delay processing of an application.

List of Approved Jurisdictions

The IRS has provided a list of jurisdictions with approved KYC rules, which includes Monaco. The list can be accessed on the IRS website.

Contact Information

For more information on Monaco’s KYC regulations and QI applications, financial institutions can contact the KYC Coordinator, Ernest Leonardini, at (212) 436-1907 or email ernest.j.leonardini@irs.gov.

Forms and Instructions

Forms and instructions required to apply for KYC approval are also available on the IRS website.

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