The bill to transpose the 5th AML/CFT Directive in Monaco has been submitted to the National Council.
On February 12, 2020, the Government of Monaco deposited on the Bureau of the National Council the bill n°1008 reinforcing the mechanism to combat money laundering, terrorist financing and corruption.
The main purpose of this bill is to transpose Directive (EU) 2018/843 of the European Parliament and the Council of May 30, 2018, commonly known as the 5th Directive. The transposition date has been set at December 31, 2020.
The main new features proposed in this bill are as follows:
1. Regarding regulated professionals :
– Clarification of the scope of application for the following professions:
- Real estate agents (introduction of a threshold for rental activity)
- Economic, legal and tax consultants
- Traders (introduction of a threshold for cash payments)
- Dealers in works of art and related trades (introduction of a transaction threshold).
Thresholds will be set by sovereign ordinance (€10,000 in the European directive).
– Inclusion in the scope of application of the following professions:
- Providers of exchange services between virtual and legal currencies
- Providers of custody portfolio services
2. Regarding due diligence measures:
- Limitation of business relations and transactions with high-risk countries, identified as having significant shortcomings in their AML/CFT systems.
- Application of enhanced customer due diligence measures when establishing such relationships or carrying out such transactions
- When entering into a business relationship with an entity, obligation to collect proof of registration in the register of beneficial owners or trusts (if applicable)
3. Regarding the register of beneficial owners :
– Extended access :
- to the Direction de la Sûreté Publique and the C.C.A.F. with regard to all information contained in the register
- to “any other person” with regard to the name, month and year of birth, country of residence and nationality of the beneficial owner, as well as the nature and extent of beneficial interests held.
The conditions of this access will be set by sovereign ordinance.
Effective date: December 31, 2020
– Implementation of criminal penalties for failure to comply with registration obligations
4. Regarding the trusts register:
– Registration requirement extended to foreign trustees when they enter into a business relationship or acquire real estate in Monaco (unless the trust is already registered in a foreign state).
– Extended access :
- obliged entities for all information contained in the register
- to any person demonstrating a legitimate interest or who submits a written request concerning a trust which holds an entity other than one present on the register of beneficial owners, with regard to the name, month and year of birth, country of residence and nationality of the beneficial owner, as well as the nature and extent of the beneficial interest held.
The conditions for such access will be set by sovereign ordinance.
Effective date: February 28, 2021
– Implementation of criminal penalties for failure to comply with registration obligations
5. Other miscellaneous provisions :
- Establishment of a register of bank accounts and safes (equivalent to the FICOBA register in France) enabling timely access by the S.I.C.C.F.I.N. and other competent authorities to information on the identity of holders (Effective date: August 31, 2021)
- Prohibition on keeping anonymous safes
- Lower threshold for use of anonymous prepaid cards
- Improved cooperation between S.I.C.C.F.I.N. and foreign financial intelligence units
- Implementation of a risk-based approach to surveillance by S.I.C.C.F.I.N. agents.
- Reinforcement of criminal sanctions
If you have any questions, please do not hesitate to contact our team.