Sovereign Order n° 10.641 of June 27, 2024 amending Sovereign Order n° 6.208 of December 20, 2016 published in the Journal de Monaco of July 5, 2024, clarifies the penalties applicable in the event of breaches of CRS obligations.
The main clarifications are as follows:
1. Penalties for late declaration or failure to declare
The applicable penalties remain unchanged, but the steps involved in imposing them have been clarified.
If the declaration is not submitted by June 30, the MRFI* is liable to an administrative penalty of 750 euros.
Failure to regularize the situation within 30 days of receipt of a formal notice is subject to an administrative penalty of 1,500 euros.
If the breach persists at the end of the 60-day period following receipt of the formal notice, MRFI* is liable to criminal prosecution.
2. Penalties for incomplete or inaccurate declarations
The penalty previously applied per declarable account. It now applies per omission or inaccuracy, with a ceiling per declarable account.
When the DSF** finds that a declaration is incomplete or inaccurate, the MRFI* is liable to an administrative penalty of 150 euros per omission or inaccuracy, up to a maximum of 1,500 euros per declarable account.
Failing rectification within 30 days of receipt of formal notice, the amount of the penalty is increased to 250 euros per omission or inaccuracy, up to a maximum of 1,500 euros per declarable account.
If the breach persists at the end of the 60-day period following receipt of the formal notice, MRFI* is liable to criminal prosecution.
3. Penalty for failure to comply with reporting and due diligence procedures
This is a new sanction.
Where DSF** finds that the reporting and due diligence procedures have been breached, the MRFI* is liable to an administrative penalty of 150 euros per breach.
Failing rectification within 90 days of receipt of a formal notice, the DSF** is liable to an administrative penalty of 250 euros per breach.
If the breach persists at the end of the 180-day period following receipt of the formal notice, the MRFI* is liable to criminal prosecution.
4. Penalty for opening a new account without self-certification
This is a new sanction, as special provisions apply to insurance contracts and trusts. As a reminder, a new account is one opened after December 31, 2016.
Where the DSF** finds that a new account has been opened without valid self-certification, the MRFI* is liable to an administrative penalty of 150 euros per breach.
DSF** gives the MRFI* formal notice to rectify the situation within 90 days.
If the situation is not rectified within this period, the MRFI* is liable to an administrative penalty of 250 euros per breach.
If the breach persists at the end of the 180-day period following receipt of the formal notice, the MRFI* is liable to criminal prosecution.
5. Penalties for failure to keep a record of actions taken and evidence gathered
This is a new sanction. In particular, the register of actions taken must make it possible to justify all internal measures taken to check the validity and plausibility of self-certifications, follow-ups with customers for missing information such as the TIN, and check the accuracy of declarations. Evidence includes proof of residence, tax returns, proof of registration, and financial statements, all of which are necessary to corroborate the plausibility of self-certifications.
Where the DSF** finds that a new account has been opened without valid self-certification, the MRFI* is liable to an administrative penalty of 150 euros per breach.
DSF** gives the IFMD formal notice to rectify the situation within 90 days.
If the situation is not rectified within this period, the MRFI* is liable to an administrative penalty of 250 euros per breach.
If the breach persists at the end of the 180-day period following receipt of the formal notice, the MRFI*is liable to criminal prosecution.
*MRFI = Monegasque Reporting Financial Institution
**DSF = Direction des Services Fiscaux