The Principality of Monaco is one of the safest States in the world. Security is also present in terms of the custodial role played by banks and trust companies in relation to the data and information they possess on their clients. This is an essential component of investor security.
As Sovereign Prince Albert reiterated a short while ago, the Principality of Monaco is not a tax haven. In other words, bank secrecy is not absolute here.
The core reason for the existence of bank secrecy is the protection of the privacy of clients, their families and personal data, subject, obviously, to maintaining good public order.
Relative bank secrecy
The first level of protection of information is provided by the terms of the Law of December 4, 2008 related to the protection of personal information. This law defines the technical measures that must be implemented to prevent the unauthorized distribution of and access to information collected.
A second level of protection is provided by the cumulated French terms contained in Article L 511-33 of the French Monetary and Financial Code, which applies to Monaco, and Article 308 of Monaco’s Criminal Code. This is what is erroneously referred to as bank secrecy. The law defines a multitude of exceptions to this secrecy.
Transparency in cases of fraud
The Treaties Monaco has signed compel the Principality to rapidly and transparently respond to requests made by other States related to offences which may have been committed against them by their residents.
Finally, pursuant to the agreement of December 7, 2004 between Monaco and the EU with regard to the taxation of savings income, the Principality has officially indicated that it intends to adopt to the greatest extent possible the OECD standards on tax cooperation.
