The automatic exchange of information entered into force in Monaco on 1 January 2017 in the form of the Norme Commune de Déclaration (NCD), the French name of the Common Reporting Standard (CRS).
The CRS provides for the automatic exchange of information on financial accounts held by persons that are not tax resident, and establishes a framework for said exchange worldwide.
The CRS was devised by the OECD and introduced in the European Union by Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation. Following the ratification of agreements and conventions with the OECD and the European Union, the CRS was implemented into Monegasque law by Sovereign Ordinance No. 6.208 of 20 December 2016 implementing the Convention on Mutual Administrative Assistance in Tax Matters, the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information and the Amending Protocol to the Agreement between the European Community and the Principality of Monaco providing for measures equivalent to those laid down in Council Directive 2003/48/EC (which entered into force on 1 January 2017) and its two appendices.
Monaco thus carried out the first automatic exchange of information in 2018, on the basis of information relating to the year 2017.
Under the NCD, reporting Monegasque financial institutions are subject to reasonable due diligence obligations (standard procedures enabling certain so-called "reportable" financial accounts to be recorded) and reporting obligations (once the financial institution has identified the financial accounts which it holds that are to be reported, it sends the Monegasque tax authorities information about such accounts on an annual basis, for the purposes of exchange with the foreign tax authorities concerned).
If they breach their reporting or reasonable due diligence obligations, financial institutions are liable for administrative and/or criminal penalties. Account holders who provide false information are also liable for criminal penalties.
In Monaco, the list of jurisdictions participating in the exchange of information is published by Ministerial Decree and is updated regularly. The list of reportable jurisdictions, partner jurisdictions, and non-reciprocal jurisdictions for the year 2020 was introduced by Ministerial Decree No. 2019-1080 of 20 December 2019 amending Ministerial Decree No. 2018-1145 of 10 December 2018 implementing the Convention on Mutual Administrative Assistance in Tax Matters, the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information and the Amending Protocol to the Agreement between the European Community and the Principality of Monaco providing for measures equivalent to those laid down in Council Directive 2003/48/EC.
|"Reportable jurisdictions"||"Non-reciprocal jurisdictions" ||"Partner jurisdictions" |
|Exchange of information is carried out only with States with which Monaco has concluded a specific agreement providing for the exchange of information (through bilateral and multilateral instruments).||Those that have committed to sending information to the States involved in automatic exchange but that do not wish to receive information in return regarding the financial activities of their residents established in any of those States, namely Monaco. ||Beyond the reportable jurisdictions, these are jurisdictions with which Monaco has engaged negotiations to carry out the automatic exchange of information, but has not committed to exchanging information.|
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|64 reportable jurisdictions for the year 2020*||13 non-reciprocal jurisdictions for the year 2020**||Partner jurisdictions for the year 2020|
- Czech Republic
- Faroe Islands
- Isle of Man
- Israel (added as compared to the 2019 list)
- New Zealand
- San Marino
- Saudi Arabia
- South Africa
- South Korea
- The Netherlands
- United Kingdom
- Aruba (was reportable as from 2019, declared to be non-reciprocal as from 2020)
- British Virgin Islands
- Cayman Islands
- Curaçao (was reportable as from 2019, declared to be non-reciprocal as from 2020)
- Lebanon (was reportable as from 2019, declared to be non-reciprocal as from 2020)
- Montserrat (was reportable as from 2019, declared to be non-reciprocal as from 2020)
- Nauru (was reportable as from 2019, declared to be non-reciprocal as from 2020)
- Saint Kitts and Nevis
- Turks and Caicos Islands (was reportable as from 2019, declared to be non-reciprocal as from 2020)
- United Arab Emirates
- All reportable jurisdictions*
- All non-reciprocal jurisdictions**
- Brunei Darussalam
- Cook Islands
- Costa Rica
- Hong Kong
- Saint Vincent and the Grenadines