Mr Etienne Franzi, President of the AMAF (Association Monégasque des Activités Financières - Monaco Association for Financial Activities) and the Compagnie Monégasque de Banque, describes the wide-ranging work of his association.
The AMAF has many responsibilities...
Indeed. First of all, on an institutional level, the AMAF deals with the union for bank workers, officers and executives in Monaco. This union is a social partner with which, I believe, the AMAF maintains an open and positive relationship.
The AMAF also represents the Monegasque financial sector when dealing with public authorities. It puts itself at the service of the Government and the National Council to contribute to the study or formulation of draft legislation which directly or indirectly affects the banking and financial sectors. The Association is also proactive in drafting new legislation or proposing new initiatives (professional qualifications, confidentiality training, etc.) aimed at improving the way the financial sector works. In this way, we develop the appeal and reputation of the sector and thus help it to grow. Finally, we promote the sector throughout our main markets. Our Association is now also responsible for managing the Monegasque guarantee fund.
It’s a broad range of work. How is the AMAF organised to fulfil these tasks?
A board is elected at the request of the President. In addition to a Treasurer Vice-President, this includes three other Vice-Presidents, each in charge of a permanent commission: banking activities, social affairs and asset management activities. A Publicity officer and a Secretary specifically assigned to questions related to anti-money laundering and professional certification also sit on the board along with six advisers.
But nothing would be possible without the support of all our members. Around a hundred of their employees are made available to our working groups, commissions, specialist groups (legal experts, financial managers, IT security managers, etc.) and “ad hoc” committees.
To improve communications, we have also set up regular meetings with the SICCFIN (Service d'Information et de Contrôle sur les Circuits Financiers - Financial Network Information Service) and the CCIN (Commission de Contrôle des Informations Nominatives - Monegasque authorities for the protection of personal data). We also, of course, maintain close relationships with the Department of Finances and the Economy, the Budget and Treasury Department and the CCAF (Commission de Contrôle des Activités Financières - Commission for the Control of Financial Activities).
What type of regulations have you championed?
Amongst other things, we have proposed legislation on currency cash and securities collateral. Up until now, this area, which forms the foundation of private banking activities, had been governed by a law dating back to the end of the 19th century!
We are currently working on a project which encompasses “various economic and legal elements”, covering a very broad area: Succession rights for trusts, Financing trade receivables, Collateral for business assets...
You’ve heard of the “butterfly effect”. These are small changes being made to legal texts, but they should result in a noticeable improvement in our working conditions.
With regard to the scope of the topics covered, we have put together a group of experts, in particular accountants and legal specialists, to guide us in our research.
We have already made contact with the Government, which showed a keen interest in the project.
At a later stage, we will also present it to the National Council, in particular its Commission for National Finances and the Economy, with which discussions have always been fruitful.
What legislation have you recently been consulted on?
The right to banking services.
It is an example of a project where the contribution of professionals played, I believe, a decisive role.
This contribution helped make the system which was being designed fully operational, and its importance was recognised in a public session by the National Council, which we very much appreciated.
The upcoming transposition of the 5th LAB/FT Directive should be the opportunity for further discussions.
What has been the role of the AMAF during this unprecedented period of the pandemic?
From the very beginning of the crisis, the financial sector came together to support the Government in deploying the significant measures taken to attenuate, as much as possible, the economic and social consequences of the disease.
The AMAF served as a go-between for the two Departments which were directly involved “Finances and the Economy” and "Social Affairs and Health” and all of our members who, in turn, acted as a link with economic stakeholders.
We also took part in planning how to structure and make decisions about the “Guarantee fund”, which took on the role of a “secular arm” of the State for finance during this period.
What lessons have you drawn from this period?
Remote working works...
Until now, only one of our institutions had “ventured out” into working from home. Then, everyone was doing it in the space of a few days, on a scale we would never have imagined. For some members, almost 80% of their staff were working remotely.
The exceptional circumstances we experienced were an opportunity to “discover” all the advantages of this way of organising ourselves. As such, there will be a “before” and an “after” for remote working.
To prepare for the “after” period, the AMAF has put together a work group to explore how the current rules could be made more flexible to help them become even more effective.
When we are ready, we will present them to the Minister of Health and Social Affairs. I know that he is in favour of such changes.
How do you go about promoting the financial sector and its image?
Alongside our special partner, the Monaco Economic Board, we organise information meetings in the most promising markets (London, Zurich, Brussels, etc.). With the support of local embassy and consular teams, we are thus able to inform small circles of selected guests about the realities of the Principality and its financial centre, as well as all of its assets and advantages.
Furthermore, we organise luncheon-presentations in Monaco with distinguished guests: Mr François Villeroy De Galhau, Governor of the Banque de France, Ms Sylvie Goulard, former Minister of Defence, European Union specialist and Deputy Governor of the Banque de France, Mr Mario Draghi, as well as leading international and Monegasque officials.
The expertise and reputation of the Monaco financial centre are widely recognised...
I would like to think so.
That is what new arrivals in our institutions tell us, and they are able to make comparisons with other financial centres.
Significant human and material resources have been mobilised to achieve this outcome, over the course of many years, by our members.
Their efforts have been supported by two major AMAF initiatives:
- Professional certification - an exam which all financial centre players must pass to work in “front line” activities, customer relations, market operator roles, etc.
- The protection of our clients’ privacy. Every three years, the almost 3,000 people working in our financial community get a “refresher”, in small groups, on regulations and best practices in this area.
