NCD / CRS

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.