Act 1.559 of 29 February 2024 adapting legislative provisions to combat money laundering, terrorist financing and the proliferation of weapons of mass destruction (Part IV) and its implementing Order 10.430 of the same date were published in the Journal de Monaco on 1 March 2024.
This important 140-article law further strengthens the measures taken by the Principality of Monaco following the negative evaluation report issued by Moneyval, always with a view to maximum transparency. In particular, it extends the new obligations recently imposed on companies (see our previous article) to trusts, foundations and associations.
I. TRUSTS
Law no. 1.559 amended law no. 207 of 12 July 1935 on trusts and its implementing ordinance in order to comply with international recommendations, thereby creating new obligations.
A. New obligation to retain information on beneficial owners and basic information
The Trustee of its representative must :
- Keep and update, in a place located in Monaco, information relating to all the beneficial owners of each Trust set up or transferred to Monaco. This record-keeping must be effective for 10 years from the termination of their involvement as trustee.
- To keep and update, in a place located in Monaco, basic information relating to persons subject to the provisions of law no. 1.362 of 3 August 2009 who enter into a relationship or carry out a transaction with the Trust set up or transferred to Monaco. This information must be kept for a period of 10 years from the date on which they cease to be involved as trustees.
B. New reporting obligations and access to information
The Trustee or its representative must provide the Direction du Développement Economique (DDE) with information relating to the beneficial owners, the domicile of the Trustee and the assets held by the Trust.
Trust registration
The application for registration, drawn up in duplicate and made within one month of the incorporation or transfer to the Principality, must state :
- The name of the Trust,
- The date of incorporation or transfer of the Trust in the Principality,
- The surnames, first names, date and place of birth, nationality and address of the settlors, trustees, beneficiaries and protectors,
- The company name, legal form, address of the registered office, place and number of registration in a public register for legal entities,
- The ownership and control structure of the trust.
This request must be accompanied by supporting documents relating to the said information.
Access to information on the Register of Trusts
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The information contained in the register of trusts can be accessed immediately, without restriction and without prior notice:
- Authorised AMSF staff,
- Authorised personnel of the judicial authorities,
- Judicial police officers from the Public Safety Department at the request of the Public Prosecutor or delegated by an examining magistrate,
- Authorised agents f the Judicial Services Departement,
- The following competent public authorities for the purposes of their anti-money laundering missions :
- Judicial Police Officers of at least the rank of Captain, specially authorised by the Director of Public Security,
- Authorised agents of the Budget and Treasury Department,
- Authorised agents of the Tax Department,
- Authorised agents of the Commission de Contrôle des Activités Financières,
- Authorised agents of the General Expenditure Control Department,
- to members of the Bar Council and to foreign authorities in the context of international mutual legal assistance through the Monegasque Financial Security Authority (AMSF).
- The information contained in the Trust’s register is accessible with restrictions :
- to trustees or their representatives, for the information they have declared,
- the bodies and persons referred to in articles 1 and 2 of law no. 1.362 of 3 August 2009, for the purposes of their due diligence obligations.
It should be noted that the law allows the Trustee to request a restriction on access to information from the Minister of State.
C. New obligation to keep accounts
The Trustee or its representative must now draw up annual accounts, which must be filed with the Economic Development Department within 3 months of the end of the financial year. In addition, supporting accounting documents must be kept for 10 years.
D. New penalties for non-compliance with these obligations
Sanctions have also been stepped up.
These are initially administrative, with fines of up to €200,000. If the breaches persist, criminal penalties may be imposed.
II. THE FONDATIONS
The law published on 1 March 2024 also amended law no. 56 of 29 January 1922 on foundations, as amended.
A. Details of the powers and duties of the person responsible for basic information and information on beneficial owners and liquidators
Law no. 1.550 of 10 August 2023 had already extended the obligation to appoint an EIR/BR to foundations. The latter must be appointed from among the president or directors of the foundation resident in Monaco or, failing that, from among one of the professionals referred to in article 2 of law no. 1.362 of 3 August 2009.
The following new obligations have been introduced for these people:
- Storage of basic information at a location in Monaco,
- Communication of this information to the Minister of State for entry in the register of Foundations held by the Department of the Interior,
- Communication to duly authorised persons, without restriction (ASMF agents, Judicial Police Officer, etc),
- Storage of the said information for 10 years from the date of revocation or liquidation of the foundation.
B. Access to information contained in the Register of Foundations
The information contained in the register of Foundations is accessible immediately, without restriction and without prior information:
- Authorised AMSF staff,
- Authorised personnel of the judicial authorities,
- Judicial Police Officers from the Public Safety Department at the request of the Public Prosecutor or delegated by an examining magistrate,
- Authorised agents of the Judicial Services Department,
- Agents of the General Expenditure Control Department,
- The following competent public authorities for the purposes of their anti-mone laundering missions :
- Judicial Police Officers of at least the rank of Captain, specially authorised by the Director of Public Security,
- Authorised agents of the Budget and Treasury Department,
- Authorised agents of the Tax Department,
- Authorised agents of the Commission de Contrôle des Activités Financières,
- Authorised agents of the General Expenditure Control Department,
- to members of the Bar Council and to foreign authorities in the context of international mutual legal assistance through the Monegasque Financial Security Authority (AMSF).
C. Revocation of the Foundation’s authorisation
The Foundation's authorisation may be revoked in the event of persistent breaches of the rules by authorised officials of the Home Office.
III. ASSOCIATIONS
Finally, the law published on 1 March 2024 amends law no. 1.355 of 23 December 2008 on associations and federations of associations, as amended.
In particular, it has introduced new obligations, such as for trusts, by creating the obligation to have a Responsible Person for Basic Information and for Beneficial Owners (RIE/RBE).
A. Details of the powers and duties of the person responsible for basic information and information on beneficial owners
The persons responsible for the RIE/RBE must be chosen from among the persons responsible for the administration of the association or its employees resident in the Principality. Failing this, and as for companies or trusts, an authorised professional must be appointed.
The identity of this person must be communicated to the Home Office.
These people must :
- Keep and update, in a place located in Monaco, information relating to all the beneficial owners of each association incorporated in Monaco. This retention must be effective for 10 years after the date of dissolution of the association.
- Notify the Department of the Interior of information and changes to information relating to beneficial owners.
- To keep and update, at a location in Monaco, basic information relating to persons subject to the provisions of law no. 1.362 of 3 August 2009. This location must be notified to the Department of the Interior. This information must be kept for 10 years after the association is wound up.
B. Obligation to keep a register of members
A register of the association's members must be kept at the registered office or at any other place in Monaco, by an authorised professional whose identity is notified to the Department of the Interior. This register must be kept for 10 years.
C. Register and access to information
Information register
This information is kept in a register held by the Home Office.
Access to information on the Register of Association
- The information contained in the register of associations can be accessed immediately and without restriction and without prior information:
- Authorised agents of the Home Office,
- Authorised AMSF staff,
- Authorised personnel of the judicial authorities,
- Judicial Police Officers from the Public Safety Department at the request of the Public Prosecutor or delegated by an examining magistrate,
- Authorised agents of the Judicial Services Department,
- Agents of the General Expenditure Control Department,
- The following competent public authorities for the purposes of their anti-mone laundering missions :
- Judicial Police Officers of at least the rank of Captain, specially authorised by the Director of Public Security,
- Authorised agents of the Budget and Treasury Department,
- Authorised agents of the Tax Department,
- Authorised agents of the Commission de Contrôle des Activités Financières,
- To member of the Bar Council via the AMSF.
D. Obligation to file accounts
Associations are now obliged to file the minutes recording approval of the accounts, the annual report, the financial report and the treasurer's or auditor's certificate with the Home Office.
E. New penalties for non-compliance with these obligations.
Sanctions have also been stepped up
These are initially administrative, with fines of up to €200,000. If the breaches persist, criminal penalties may be imposed.
New case of dissolution of the association
The association is dissolved on referral by the Minister of State to the President of the Court of First Instance in the event of inactivity for more than 2 consecutive years.