Sovereign Order n°7114 of 14 September 2018 amended Annexes A and B to the Monetary Agreement of 29 November 2011 between the European Union and the Principality of Monaco.
These annexes list all of the EU legal texts applicable to credit institutions, subject to the limitations set down by the Agreement. The list now includes some 152 European texts, 30 of which were included as a result of the amendment. The majority are Directives or Regulations introducing changes to certain texts which were already included in these Annexes.
However, among the additions to Annex A of the Monetary Agreement is a new text with significance for the Monegasque banking sector, namely the Payment Services Directive (Directive (EU) 2015/2366 of 25 November 2015 on payment services in the internal market, also known as “PSD 2”). This Directive is applicable in the Principality through its transposition into French law, albeit only within the scope of application set down by the Monetary Agreement.
Some of the Directive's provisions continue to be expressly excluded by Annex A. These include the sections on payment services and the rights and obligations relating to payment services. Maintaining the spirit of the Monetary Agreement, relations between customers and Monegasque credit institutions continue to be governed solely by the laws of Monaco.
Ultimately, only the provisions concerning the necessary conditions for operating as a payment provider will be applicable in the Principality. Although there is currently no payment institution accredited to carry on this activity in the Principality, the fact that the Directive applies in Monaco de facto creates a favourable environment for businesses looking to engage in the activity. In Monaco, these businesses will enjoy an identical regulatory environment to that found in all Member States of the European Union.
