The Principality of Monaco has strenghened its framework to combat money laundering, terrorist financing and corruption by passing the Act No 1,462 and the Sovereign Ordinance No 7,065. These instruments operate an "implementation" of Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 (4th Money Laundering Directive) through equivalent measures.
The Monegasque legal framework now imposes on all commercial and civil companies, economic interest groupings and other "legal entities" in the meaning of the law (any legal construct such as, notably, a foundation or a trust) that are listed in the Trade and Industry Register of Monaco ("RCI") or on any other special register, to disclose to the Direction de l’Expansion Economique (the Business Development Agency) the identity of their beneficial owner(s).
The term "beneficial owner" may have different meanings depending on the legal person concerned, whether it be a company or another "legal entity" in the meaning of the law.
Equally, the deadline for disclosing beneficial owners varies depending on the specific situation of the entity concerned, ranging from 30 days after a first registration with the RCI or after the occurrence of a fact or an act which requires that a modification or an update be made to the RCI, to 28 June 2020 for companies that were active as at 15 October 2018.
The failure to comply constitutes an offence punished by a fine ranging from €9,000 to 18,000.