Monaco: a financial centre in the heart of Europe, on the shores of the Mediterranean.
Interview with Jean Castellini, Government Advisor for Finance and Economics.
What are the strengths of the Monegasque financial centre?
They are directly related to those of the Principality.
Firstly security, which derives from a diverse and specific regulatory framework. Investors wishing to deposit their assets in a bank or entrust them to a trust company, know they will be doing so in a country without debt, with no deficit, and with high political and institutional stability.
Then there is the legislative and regulatory framework. The financial centre is controlled, audited and inspected. The French Prudential Control Authority oversees banking activities, and the Financial Activities Control Committee supervises management activities. The fight against money laundering is the responsibility of SICCFIN.
Furthermore, if you are registered as a financial institution or trust company in Monaco, it is mandatory for you to be a member of the Monaco Association of Financial Activities. This allows not only true representation of the Centre, but also a form of self-regulation by all players in the world of finance.
Finally, the close relationship between professionals and the Government reflects a real community of interests; the financial players lay great emphasis on it.
What do you think would make the financial centre even more attractive?
The legal and regulatory package needs to be complemented by a real ecosystem, which for that matter partly exists today. Indeed, even though the banks still manage very large asset volumes, there is increasingly strong diversification of the financial players: private trust companies, consulting firms, hedge funds, family offices etc. Many financial professionals are entering into in synergy, including with legal advisors, accountants, and the International University of Monaco, which offers a Master in Finance among other courses.
If diversified financial management strategies are offered to high profile clients, such as yachting professionals for example, and they settle in Monaco, then the virtuous circle is closed.
Enhancing attractiveness also means fostering the accessibility of the Principality, lying in the heart of Europe, on the edge of the Mediterranean and a few minutes from an international airport. Offices need to be built to accommodate newcomers better, and offer them – as is already the case- very high quality telecommunications so as to facilitate their professional exchanges.
Finally, construction of luxury private real estate is a very attractive feature for future residents.
Monaco, an international financial centre?
Of course! It is a centre known internationally through cooperation agreements in the prudential area, in the supervision of financial activities and in the fight against money laundering. The Control Commission and SICCFIN have signed many cooperation agreements, which strengthens our legitimacy and reputation. As for Monaco For Finance, it must demonstrate the expertise of the financial centre’s many players to foreigners who are interested in investing or even living in the Principality.
