A legislative development in a changing environment
Draft law No. 1124, amending Law No. 1.492 of 8 July 2020 on the right to a bank account, reflects the Principality’s ongoing efforts to adapt its legal framework to evolving international standards.
Introduced in 2020, the right to a bank account pursues a fundamental objective: ensuring that any individual or legal entity established in Monaco has access to basic banking services, an essential condition for economic activity. In October 2024, the Conseil National adopted Proposition de loi n° 263, aimed at strengthening this framework, notably by introducing the concept of implicit refusal and improving access rights.
The proposed reform proposed by the Government demonstrates the authorities’ intention to strengthen the effectiveness of this mechanism, taking into account lessons learned from its practical implementation, particularly in terms of timelines and procedural clarity.
A structured articulation with AML/CFT requirements
The draft law is set against a backdrop of continuously reinforced international standards in anti-money laundering and counter-terrorist financing.
In this regard, the explanatory memorandum usefully highlights that financial inclusion must be considered in alignment with these requirements, through a risk-based approach.
This approach now constitutes a cornerstone of Monaco’s regulatory framework:
it allows financial institutions to tailor their due diligence measures to identified risks, while safeguarding the integrity of the financial system.
The draft law does not call this balance into question. On the contrary, it reaffirms its relevance by maintaining the responsibility of credit institutions in assessing account opening requests.
Strengthening the effectiveness of the right to a bank account
The proposed changes address clearly identified operational challenges.
- Improved control over timelines
- a 45-business-day period to open an account once a complete file has been received ;
- a defined timeframe for institutions to request additional documentation.
- Introduction of implicit refusal
It strengthens the applicant’s position and facilitates access to the designation mechanism through the Budget and Treasury Department.
- Clarification of legal remedies
Taken together, these measures contribute to reinforcing the practical effectiveness of the right to a bank account, without altering the core principles of the system.
- Extension of scope and stronger safeguards
- Individuals with only a joint account may request an individual account
- Clients facing account closure can apply immediately
- Additional professional and token issuance scenarios are covered
An evolving operational reality
Beyond the legal framework, market practice highlights notable developments in the banking environment.
In a context characterized by:
- increasingly sophisticated financial structures,
- the internationalization of financial flows,
- and heightened compliance expectations,
This evolution is fully aligned with international standards.
The Financial Action Task Force (FATF) itself emphasizes the importance of maintaining a balanced approach, ensuring that compliance requirements, if applied too uniformly, do not inadvertently lead to financial exclusion.
In this context, the focus shifts: it is no longer the legitimacy of these requirements that is at stake, but rather how they are implemented in practice, in a manner that remains both operational and proportionate.
Preserving a balance between financial security and accessibility
The right to a bank account mechanism is embedded in this logic of balance.
It serves as a regulatory tool aimed at:
- ensuring access to essential banking services,
- while preserving the autonomy of institutions in their risk assessments.
It also implicitly underscores the importance of a harmonized implementation, capable of reconciling compliance requirements with the fluidity of banking relationships.
A strategic consideration for Monaco’s attractiveness
Access to banking services is a key structural component for economic actors.
In an increasingly competitive international environment, the ability to offer a framework that is:
- secure,
- compliant with international standards,
- and operationally efficient,
The right to a bank account framework contributes to this dynamic by providing a structured response to more complex access situations.
More broadly, it reflects the Principality’s ability to evolve its legal framework while upholding a dual imperative: preserving the integrity of its financial system while supporting the accessibility of banking services.
Rosemont looks forward to early adoption of the Law.
How Rosemont can support you
In an environment where access to banking services lies at the intersection of enhanced regulatory requirements and increasingly risk-sensitive banking practices, Rosemont International supports its clients through a combined legal, strategic and operational approach.
In particular, we assist with:
- structuring account opening files aligned with current banking expectations in terms of transparency, flow understanding and structural clarity;
- formalizing and securing source of funds and source of wealth documentation in line with Monaco’s regulatory framework and international standards;
- managing complex banking access situations, including assistance within the right to a bank account framework and anticipation of AML/CFT-related friction points;
- providing strategic advice in the context of Monaco-based structuring or relocation projects, with a focus on bankability and regulatory sustainability ;
- supporting international clients, private wealth structures and family offices in aligning their operations with the expectations of financial institutions and regulatory authorities.
For more information, please contact office@rosemont-mc.com
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