The recent agreements between the Principality of Monaco and the EU impose a number of new obligations on Monegasque banks.
Sovereign Order No. 8.600 of April 1, 2021 amended Annexes A and B to the Monetary Agreement concluded between the Principality of Monaco and the European Union on November 29, 2011.
Fourteen new European texts have been included in Annex A to the Monetary Agreement. Therefore, the new regulations in Monaco apply, depending on the circumstances, to credit institutions, electronic money institutions and payment institutions.
Two new European texts have been included in Annex B of the Monetary Agreement and Monaco is required to enact equivalent legislation before 31 December 2023.
This year, several relevant texts for Monaco's banking sector have been included in Annex A of the Monetary Agreement, in particular EU Directive 2019/878 of 20 May 2019 (known as "CRD V"), as well as Regulation (EU) 2019/ 876 of May 20, 2019 (known as "CRR 2").
These two texts fundamentally change the regulatory requirements in the field of management and internal control, and above all, impose new obligations on European banks in the field of, inter alia, variable remuneration, outsourcing, audit cycles, conflicts of interest.
All the above-mentioned new requirements and obligations, since the publication of Sovereign Order No. 8.600 of April 1, 2021, now also apply to banks in the Principality of Monaco.
