This law is part of a package of 4 bills planned by the Monegasque government, following the report of the MONEYVAL committee in January 2023, to implement the recommendations. Amongst other matters detailed below it creates an obligation for Monaco Civil companies (SCPs) to appoint an independent person to be responsible for the maintenance of the information on the Register of beneficial owners.
As a reminder, following this report, the Principality of Monaco is under increased scrutiny and had already passed 9 laws during the evaluation cycle. The Principality has 1 year to implement all the recommendations before being examined again in June 2024 by the FATF.
It should be noted that draft law n°1078 part II, which is intended to be complementary and focuses more on the transparency of legal entities, should be examined by the National Council at the end of July. It aims to amend a number of laws to improve access to so-called basic information and its scope, accuracy and updating by the competent authorities, and to establish a legal framework for keeping such information up to date.
Bill 1077 Part I mainly amends Act 1362 of 3 August 2009 on the fight against money laundering, terrorist financing and corruption. In concrete terms what will change with this law?
- SICFIN will be restructured into an administrative authority: the Monegasque Financial Security Authority (AMSF: Autorité Monégasque de Sécurité Financière). This authority will be able to impose sanctions on those subject to its jurisdiction, including notaries and bailiffs, and will also be able to control and supervise lawyers. It will be organised into 3 departments: 1 for financial intelligence, 1 for supervision and 1 for sanctions.
- The introduction of a permanent mechanism for checking the good repute of directors, shareholders, partners and beneficial owners of regulated entities.
- The Register of beneficial owners will be renamed "Register of beneficial owners - companies and GIE (Economic interest groupings)".
- The provisions relating to the reporting and sanctioning of breaches of this register will be strengthened.
- The definition of beneficial owner will be revised on the basis of the FATF definition (see the 4th AML/CFT Directive, revised by the 5th AML/CFT Directive).
- The obligation to obtain, retain and disclose information on beneficial owners will be extended to associations and foundations.
- Legal entities will be required to appoint a Monegasque resident person responsible for obtaining, retaining and making available to the authorities basic corporate information and information on beneficial owners.
- Monaco Civil companies (SCPs) in certain situations are required to appoint a person responsible for obtaining, retaining and making available to the authorities basic corporate information and information on beneficial owners, but this person must be selected from a list of authorised businesses, which includes Rosemont Consulting SARL. These obligations are set out in Article 22-1 of Law 1.362 of 3 August 2009 as modified.
- Improving the effectiveness of investigations and prosecutions, by making it possible to extend the data retention period, and requiring taxable persons to have systems enabling them to respond quickly and securely to investigations.
- Increasing the amount of criminal penalties incurred in the event of non-compliance.
* These were : a commercial company or an economic interest grouping entered in the Trade and Industry Register; a civil company entered in the special register held by the Trade and Industry Register; a trustee established or domiciled in the Principality administering a trust set up or transferred in the Principality ; a trust established by virtue of law 214 and a trustee or any person occupying an equivalent position in a legal structure similar to trusts, established or domiciled outside the European Union, when purchasing a property or establishing a business relationship in the Principality.
It should be noted that the Direction du Développement Economique (formerly the Direction de l'Expansion Economique), certain banks and other entities regulated in terms of the fight against money laundering (such as estate agents, TCSPs, lawyers and accountants) are already beginning to ask taxable persons to provide extracts from the beneficial ownership registry as required by the existing legislation.
Rosemont International can assist you with the declaration of beneficial owners in Monaco. For more information on our services envisaged under Bill n°1077, please contact office@rosemont-mc.com