Monaco: New penalties under CRS regime
Monaco issued updated guidance that includes new penalties under the CRS regime.
Monaco issued updated guidance that includes new penalties under the CRS regime.
Monaco published Sovereign Ordinance No. 10.641 (June 27, 2024) in the Official Journal, amending Sovereign Ordinance No. 6.208 (December 20, 2016) regarding the Convention on Mutual Administrative Assistance in Tax Matters and the automatic exchange of financial account information.
Article 13 has been amended as follows:
- Reporting financial institutions that fail to submit a required declaration (as specified in Article 3) within the reporting deadline, will incur an administrative penalty of €750.
Article 14 has been amended as follows:
- If a financial institution provides incomplete or inaccurate information, a penalty of €150 will be imposed for each omission or inaccuracy, but not exceeding €1,500 per reportable account containing one or more omissions or inaccuracies.
In addition, the following new sections have been added to Article 14:
Article 14-1:
- If a financial institution fails to meet declaration and due diligence obligations specified in Annexes I and II of the ordinance, a penalty of €150 per failure will be imposed.
Article 14-2:
- If a financial institution opens an account without obtaining a valid self-certification, a penalty of €150 per breach will be imposed, except in the following cases:
- Assignment of an insurance contract; or,
- Acquisition of shares in investment trusts on the secondary market.
Article 14-3:
- If a financial institution fails to maintain records of actions taken and supporting evidence for the proper execution of reporting and due diligence obligations, a penalty of €150 per breach will be imposed.
Article 14-4:
All penalties need to be paid to the order of the receiver of the tax authorities within 30 days following the receipt of the formal notice. Late payments will accrue interest at the legal rate applicable, calculated per month.
Read a July 2024 report prepared by the KPMG member firm in France
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