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Banking & Finance

Monaco not only has a unique status among the community of nations but is also home to a banking and financial platform unlike any other.

With some thirty banks and fifty financial management companies in little more than two square kilometres, Monaco has built its internationally renowned banking and financial market on the three pillars of competency, stability and confidentiality. As a unique market, it is also regulated by a unique set of standards and rules. 

Monegasque banking and finance law is a composite system stemming from legislation passed not just in Monaco but also in France and Europe. Monaco has signed various conventions with France and the European Union, meaning that there is a constantly evolving body of law that applies in the Principality. 

With ten years’ experience in this area, we support clients who are now operating in an increasingly regulated context and under greater pressure from regulators. Disputes relating to civil and criminal banking liability have become one of our key areas of expertise. Banks can be obliged to implement or submit to a whole range of procedures, from provisional and protective measures to debt restructuring, debt collection, calling on guarantees or enforcement actions. 

We regularly represent banks before the courts of Monaco to defend their interests if their liability is invoked as a result of a custodial agreement, management contract or any other asset management agreement. Banks in the Principality have an international clientele, which can impact their situation when it comes to third party liability. Freezing a bank account on civil or criminal grounds can raise a whole series of issues that our team is skilled in settling.

We are regularly involved in reviewing and adapting the contractual documents that banks and other operators issue to their clients or partners, to ensure that they comply with Monegasque law.

Monaco's banking sector has undergone consolidation and we have developed bespoke solutions for clients acquiring a bank or financial institution or selling off all or part of their business.
Lastly, our team frequently advises overseas banks and financial management companies seeking to set up subsidiaries or branches in Monaco. 

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Financing Guarantee
Large projects, particularly real estate projects, are often developed in the Principality of Monaco where the environment attracts investors in searc
Insurance
Insurance transactions in Monaco are mainly subject to French law under the various conventions that exist between France and Monaco.Nevertheless, ins
Regulatory
The 2008 global financial crisis caused European and national authorities to rush to regulate the banking and finance sectors. In recent years, a body

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28/07/2022
Eng­lish High Court per­mits ser­vice of court pro­ceed­ings by NFT
For the first time out­side the United States and for only the second time world­wide,[1] a court has al­lowed the ser­vice of pro­ceed­ings via non-fun­gible token (NFT).  The judg­ment of Trow­ers J in the...
24/06/2022
Reg­u­la­tion on for­eign sub­sidies is head­ing for the fin­ish line - European...
Since 5 May 2022, EU tri­logue ne­go­ti­ations have been un­der­way on the first Reg­u­la­tion to lim­it the ef­fect of sub­sidies from third coun­tries to com­pan­ies act­ive in the EU. That an agree­ment will be reached...
01/06/2022
CMS Next
What’s next? In a world of ever-ac­cel­er­at­ing change, stay­ing ahead of the curve and know­ing what’s next for your busi­ness or sec­tor is es­sen­tial.At CMS, we see ourselves not only as your leg­al ad­visers but also as your busi­ness part­ners. We work to­geth­er with you to not only re­solve cur­rent is­sues but to an­ti­cip­ate fu­ture chal­lenges and in­nov­ate to meet them.With our latest pub­lic­a­tion, CMS Next, our ex­perts will reg­u­larly of­fer you in­sights in­to and fresh per­spect­ives on a range of is­sues that busi­nesses have to deal with – from ESG agen­das to re­struc­tur­ing after the pan­dem­ic or fa­cing the di­git­al trans­form­a­tion. We will also share with you more about the work that we are do­ing for our cli­ents, help­ing them in­nov­ate, grow and mit­ig­ate risk.To be able to provide you with the best sup­port, we im­merse ourselves in your world to un­der­stand your leg­al needs and chal­lenges. However, it is equally im­port­ant that you know who we are and how we can work with you. So, we in­vite you to meet our ex­perts and catch a glimpse of what is hap­pen­ing in­side CMS.En­joy read­ing this pub­lic­a­tion, which we will up­date reg­u­larly with new con­tent.CMS Ex­ec­ut­ive Team
26/05/2022
Schrems II: Re­ac­tions to the judge­ment and the su­per­vis­ory au­thor­it­ies'...
“Schrems II”: Opin­ions of the su­per­vis­ory au­thor­it­ies on Schrems II and re­com­mend­a­tions on the im­ple­ment­a­tion of the judge­ment in in­ter­na­tion­al data trans­fers On 16 Ju­ly 2020, the Court of Justice...
11/05/2022
SF­DR con­tin­ues to evolve: more gran­u­lar dis­clos­ures to be pro­posed on in­vest­ments’...
Fin­an­cial products with ex­pos­ures in fossil gas and nuc­le­ar en­ergy are likely to have more gran­u­lar re­port­ing re­quire­ments un­der the Sus­tain­able Fin­ance Dis­clos­ure Reg­u­la­tion (“SF­DR”). The European...
11/05/2022
SF­DR’s Prin­cip­al Ad­verse Im­pacts In­dic­at­ors on course to change
The European Com­mis­sion has giv­en the European Su­per­vis­ory Au­thor­it­ies (“ES­As”) a man­date to re­view the SF­DR Del­eg­ated Reg­u­la­tion in­dic­at­ors for prin­cip­al ad­verse im­pact and the fin­an­cial product...
26/04/2022
Amendement of the usury rate in Monaco
The Sov­er­eign Or­der n° 2.271 of 6th Ju­ly 2009 re­lat­ing to the de­term­in­a­tion of the usury rate was amended by Sov­er­eign Or­der n° 9.169 of 31st March 2022, pub­lished on 8th April 2022 in the Journ­al de...
15/03/2022
To­wards a mono­poly for CCAF-ap­proved com­pan­ies and in­sti­tu­tions in the...
In view of the forth­com­ing ac­ces­sion of the Mone­g­asque fin­an­cial reg­u­lat­or, the Com­mis­sion de Con­trôle des Activ­ités Fin­an­cières (the "CCAF"), to the In­ter­na­tion­al Or­gan­isa­tion of Se­cur­it­ies Com­mis­sions...
07/03/2022
EU and UK Sanc­tions against Rus­sia: a fo­cus on the Fin­an­cial Sec­tor
In re­cent days the EU and the UK have ad­op­ted and ex­pan­ded a num­ber of  sanc­tions meas­ures against Rus­si­an and Be­larus­i­an in­di­vidu­als and com­pan­ies. This art­icle fo­cuses on re­strict­ive meas­ures dir­ec­ted...
10/01/2022
Tech­no­logy: a uni­fy­ing force
Com­pan­ies of­ten talk about the scourge of the silo, the farm­ing stor­age meta­phor that has come to rep­res­ent teams or de­part­ments that op­er­ate on their own. However, with tech­no­logy trans­form­ing vir­tu­ally every in­dustry on the plan­et, col­lab­or­a­tion across sec­tors has be­come es­sen­tial. Ad­di­tion­ally, the COV­ID-19 crisis has high­lighted the cru­cial role tech­no­logy, spe­cific­ally con­nectiv­ity, plays as the back­bone of our busi­ness world across all sec­tors, and once COV­ID-19 is brought un­der con­trol or even erad­ic­ated, it will prove es­sen­tial for so­cial and eco­nom­ic prosper­ity. For­ging links in di­git­al in­fra­struc­ture pro­jects Jonath­an Dames, a part­ner at CMS in Lon­don, says that his team’s prac­tice tra­di­tion­ally centred on so­cial and eco­nom­ic in­fra­struc­ture and en­ergy fin­ance, but is in­creas­ingly shift­ing to­wards di­git­al in­fra­struc­ture pro­jects, in­clud­ing fibre net­works and data centres.He says that these kinds of pro­jects re­quire close col­lab­or­a­tion between tra­di­tion­al pro­jects and pro­ject fin­ance law­yers and their col­leagues in Tech­no­logy, Me­dia & Com­mu­nic­a­tions (TMC), “We al­ways had cros­sov­er, and en­joyed great col­lab­or­a­tion with both the In­fra­struc­ture & Pro­jects and En­ergy Sec­tor Groups, for ex­ample, but now we are work­ing with the TMC Sec­tor Group much more closely be­cause we are fa­cing reg­u­lat­ory is­sues and re­gimes that we have nev­er faced be­fore such as Code Powers, the re­quire­ments of the Com­mu­nic­a­tions Act and re­lated le­gis­la­tion.“CMS has ex­tens­ive in­fra­struc­ture, en­ergy and tele­coms ex­pert­ise and is able to bring it all to­geth­er to cre­ate the skill set re­quired to de­liv­er long-term pro­ject fin­an­cing to tech­no­logy-based in­fra­struc­ture pro­jects.”Ad­di­tion­ally, the fund­ing of di­git­al in­fra­struc­ture pro­jects, such as the 10,000km El­laLink sub­sea cable between Brazil and Por­tugal, de­mands more com­plic­ated fin­an­cing struc­tures to cov­er the re­lated risks and cre­ate the op­tim­al cap­it­al stack to get the best all-in pri­cing. This has in­volved us­ing mezzan­ine fin­ance and vendor fin­an­cing for con­struc­tion, with a view to at­tract­ing cheap­er op­er­a­tion­al peri­od fin­an­cing in the me­di­um term. A sub­sea cable, cross­ing in­ter­na­tion­al wa­ters and land­ing in mul­tiple leg­al jur­is­dic­tions, is not, un­der­stand­ably, ex­posed to the same po­ten­tial threats and per­ils as a hos­pit­al or a con­ven­tion­al power sta­tion or a wind farm on a single site. So, not all the usu­al rules, mar­ket norms, leg­al con­structs and stand­ard mit­ig­ants ne­ces­sar­ily fit for a fin­an­cing of this type of as­set. Rise of the ma­chines The CMS In­tel­lec­tu­al Prop­erty (IP) Group has un­sur­pris­ingly been at the fore­front of tech­no­lo­gic­al in­nov­a­tion, sup­port­ing cli­ents in the iden­ti­fic­a­tion, pro­tec­tion and com­mer­cial­isa­tion of their IP as­sets. Tom Scourfield, Co-Head of the group, is based in Lon­don and Warsaw, two cit­ies well-known for their tech­no­logy in­cub­a­tion. He ob­serves, “We are not only see­ing an in­crease in the use of tech­no­logy in col­lab­or­a­tion, but much more fre­quently, col­lab­or­a­tion with tech­no­logy it­self.”Ar­ti­fi­cial In­tel­li­gence (AI) is a grow­ing area of fo­cus. Pat­ent ap­plic­a­tions for AI tech­no­lo­gies have in­creased by 170,000 since 2013, ac­cord­ing to a re­cent re­port by the World In­tel­lec­tu­al Prop­erty Of­fice (WIPO). In the field of AI pat­ents, there is cur­rently a fas­cin­at­ing de­bate around the ques­tion of pat­entab­il­ity of in­ven­tions cre­ated by AI ma­chines them­selves. Ac­cord­ing to Tom Scourfield, “Bey­ond pat­ents, we are also see­ing an in­creased use of AI in de­tect­ing and mon­it­or­ing coun­ter­feits and oth­er on­line brand harms. AI is also be­ing used to sup­ple­ment and sup­port the ana­lys­is of sim­il­ar­it­ies between com­pet­ing brands, wheth­er in terms of brand clear­ance or in­fringe­ment scen­ari­os.”Whatever de­vel­op­ments AI and oth­er in­nov­a­tion may bring, he thinks that one thing is cer­tain, “As IP law­yers, we al­ways have to be for­ward-think­ing, look­ing to pro­tect and se­cure com­pet­it­ive ad­vant­ages for our cli­ents in mar­kets and op­por­tun­it­ies that are not even fully es­tab­lished yet.” Pi­on­eer­ing new products Lon­don Funds part­ner Chris­toph­er Luck sees a real ap­pet­ite for new types of as­sets from the funds com­munity. He says that di­git­al tech­no­lo­gies are trans­form­ing the back-of­fices of as­set man­agers and are im­prov­ing the cus­tom­er ex­per­i­ence. Fund man­agers are be­com­ing bet­ter at stor­ing and har­ness­ing data, us­ing block­chain tech­no­lo­gies and plat­forms to make on­board­ing of know your cus­tom­er (KYC) in­form­a­tion and data pro­tec­tion a more stream­lined pro­cess. The use of smart con­tracts is also be­com­ing more pre­val­ent. Chris­toph­er Luck notes that the ad­vent of token­isa­tion, the pro­cess of con­vert­ing real as­sets in­to di­git­al rep­res­ent­a­tions (tokens) on a block­chain, has opened up the in­vest­ment mar­ket to a broad­er range of in­sti­tu­tion­al and re­tail in­vestors. “By demo­crat­ising or cre­at­ing more op­por­tun­it­ies for in­vestors, this is provid­ing ad­di­tion­al li­quid­ity in­to a num­ber of sec­tors, most not­ably real es­tate.” He says, “We are see­ing tokens at their most ad­vanced in the United States and Asia, and grow­ing in the UK and Europe.”  Un­der­stand­ing new en­vir­on­ments  In oth­er more tra­di­tion­al sec­tors, law­yers are in­creas­ingly be­ing ex­pec­ted to provide ad­vice on how to deal with the chal­lenges and op­por­tun­it­ies that tech­no­logy provides.Mark Ziek­man, Co-Head of the CMS Con­sumer Products Group, says, “In the con­sumer goods sec­tor, block­chain is mak­ing an im­pact, provid­ing the sup­ply chain and cus­tom­ers with a great­er de­gree of con­fid­ence in the proven­ance of a product and wheth­er it meets key sus­tain­ab­il­ity cri­ter­ia.”Cus­tom­ers, par­tic­u­larly mil­len­ni­als, are in­creas­ingly de­mand­ing in­form­a­tion around trace­ab­il­ity and audit­ab­il­ity to have con­fid­ence in FM­CG com­pan­ies, lo­gist­ics com­pan­ies and re­tail­ers.Fur­ther­more, Mark Ziek­man be­lieves that tech­no­logy in gen­er­al has played a pivotal role in ad­dress­ing wide­spread busi­ness dis­rup­tion caused by COV­ID-19, en­abling com­pan­ies to trans­form their busi­ness mod­els. Good ex­amples are res­taur­ants which al­most in­stant­an­eously changed their busi­ness mod­el to provide takeaways and food de­liv­er­ies. Shops shif­ted their fo­cus to selling on­line. These changes will not dis­ap­pear in the af­ter­math of the COV­ID-19 pan­dem­ic. Shift­ing reg­u­lat­ory land­scapes Reg­u­lat­ors con­tin­ue to face the on­go­ing chal­lenge of keep­ing pace with in­nov­a­tion and the new mar­ket dy­nam­ics it cre­ates. ESG factors have come to the fore in the minds of reg­u­lat­ors as well and this think­ing is only go­ing to in­tensi­fy. Cristina Reich­mann, a Bucharest based part­ner in the CMS Bank­ing & Fin­ance Group, says that reg­u­lat­ors are al­ways hav­ing to re­spond to new eco­nom­ic mod­els and pub­lic sen­ti­ments. She has seen fast dis­rup­tion in the bank­ing sec­tor CEE, “Ro­mania, for ex­ample, has a his­tory of in­nov­a­tion, pre­vi­ously emer­ging as a ma­jor in­ter­na­tion­al out­sourcing hub and then be­com­ing a fintech centre with a num­ber of uni­corns.” She points to agile bank­ing and fintech, which are provid­ing great­er ac­cess and a broad­er suite of ser­vices to cus­tom­ers, and with this comes reg­u­lat­ory chal­lenges. She says, “There are a lot of com­pli­ance as­pects to be met and solved.”
23/12/2021
Min­im­um tax­a­tion of groups and shell en­tit­ies: two new draft dir­ect­ives...
On Decem­ber 22, 2021, the European Com­mis­sion pub­lished two draft dir­ect­ives: the first one is the European ad­apt­a­tion of the mod­el rules pub­lished two days earli­er by the OECD in or­der to guar­an­tee a...
14/12/2021
Fin­an­cing COP 26 out­comes
It was a wa­ter­shed mo­ment, ac­cord­ing to Mark Car­ney. The UN Spe­cial En­voy for Cli­mate Ac­tion and Fin­ance was in­tro­du­cing the Glas­gow Fin­an­cial Al­li­ance for Net Zero (Gfanz): over 450 banks, as­set man­agers...