Monegasque Banking Law: An Overview

Regulation of Financial Activities in Monaco

The Monegasque Financial Centre (CMF) is responsible for regulating financial activities in Monaco, including banking. The CMF ensures that banks operating in Monaco comply with the laws and regulations set forth by the Monégasque Financial Code (MFC).

Acquisition of a Monegasque Bank

According to article L 511-12 of the MFC, any acquisition of a Monegasque bank must be notified to the Autorité de Contrôle Prudentiel et de Résolution (ACPR). The ACPR has the power to veto the acquisition if certain conditions set out in article R 511-3-2 of the MFC are not met. These conditions include:

• Respectability of the acquirer
• Other criteria as specified by the MFC

Veto Power over Acquisition and Control

The CMF also has veto power over the acquisition and control of a bank, as stated in article L 511-12-1 of the MFC.

Foreign Ownership of Banks in Monaco

There are no formal restrictions on foreign ownership of banks in Monaco. However, any acquisition must be de facto authorized by the ACPR (see question 20).

Changes in Control and Bank Supervision

A controlling entity may need to disclose information about their activity and governance as part of the bank supervision process. Additionally, shareholders may be solicited by the ACPR to financially support a defaulting bank, as per article L 511-42 of the MFC.

Important Note

This is a general overview of Monegasque banking law and not specific legal advice. If you require detailed information or legal counsel, we recommend consulting a qualified lawyer who specializes in Monegasque banking law.