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Could Monegasque nationals and residents soon be legally entitled to a bank account?

The right to a bank account is set to be enshrined in Monegasque law, after the Government of the Principality introduced a bill to that end.

The bill is actually based on law proposal No 232 on the introduction of a right to a bank account, adopted by the National Council on 24 October 2017 (see: Towards the right to a bank account in Monaco). The law proposal envisaged granting all natural and legal persons established in Monaco (hereinafter referred to as “petitioners” or “beneficiaries”) the right to open an account with a Monegasque credit institution. It laid down the framework and regime for this future right to a bank account, while being careful to preserve the specific obligations incumbent on Monegasque credit institutions (anti-money laundering, insolvency, etc.).

As part of its adoption process, the law proposal was referred to the Government, which decided to turn it into a formal bill in accordance with article 67 of the Constitution. As a result, bill No 991 was introduced during the public session of 3 April 2019.

A number of amendments were made to the law proposal, including, most significantly,the following:

  • In certain cases, the right to a bank account will also become an obligation, since any person engaged in a commercial activity in the Principality will now be required to open a business account with a Monegasque credit institution.
  • The initial proposal stated that the AMAF would act as mediator in the event of a dispute between a petitioner and a credit institution, but this provision has not been retained. A petitioner wishing to challenge a decision to refuse him/her an account will have to go through the usual judicial route.
  • Petitioners will not have an absolute right to choose their bank, as only certain Monegasque credit institutions will be concerned by the new law and therefore bound to apply the new right to an account.

Incidentially, the Government has also amended certain provisions concerning the beneficiaries of this right, particularly regarding situations where an institution rejects a request to open an account or closes it unilaterally, or even in case of indebtness proceedings.

The bill will now be debated in session and, if approved, adopted at a future session of the National Council.

Before the right to a bank account takes effect, however, a Sovereign Ordinance will be required, setting out the documents needed to open an account, along with a Ministerial Order naming the credit institutions bound to apply this right.

Authors

Portrait ofOlivier Marquet
Olivier Marquet
Managing Partner
Monaco