The National Council is proposing a change in the law that governs who can have a bank account in the Principality, with those in favour of the update arguing that it should be easier for residents and businesses to open and maintain accounts in Monaco.
At a recent meeting of the National Council, Monaco’s elected body, members addressed an all-too-common frustration experienced by non-Monegasque residents of the Principality: banks abruptly closing accounts or denying people and businesses access altogether.
Monaco’s Law 1492, introduced in 2020, established the right to a bank account, but its real-world implementation has revealed significant limitations. The Council is now seeking to resolve these issues with Bill 263, an amendment to the previous law, which was unanimously voted in on 17th October. A key provision of the bill allows customers to respond to undue delays more effectively.
“We have planned to further strengthen the deadlines applicable to banking institutions and an emergency procedure so that the person or entity that is refused the right to an account can quickly obtain justice,” stated Christine Pasquier-Ciulla, Chair of the National Council’s Legislation Commission, during the Legislative Public Session on 17th October, adding that such refusals should be justified by non-compliance with anti-money laundering laws rather than purely economic considerations.
Changes to the law
If a bank fails to respond to an account application within the legally mandated 15-day period, that silence will be treated as a refusal. This implicit denial allows applicants to immediately escalate the matter to Monaco’s Budget and Treasury Department, which will then step in and assign a bank to provide the necessary services.
The new measures are designed not only to cut down on administrative delays but also to establish a fairer system of appeals and ensure banking services are accessible to everyone. This would apply even to those who already have collective or joint accounts or those facing the sudden termination of their account by a bank.
The proposed legislation also aims to “fight against economic and social exclusion,” said Council member Nathalie Amoratti-Blanc. As she noted, some individuals have been left without a fixed banking address, which in today’s world amounts to being shut out of much of everyday life, given that “financial operations are required to be dematerialised.” She added, “Our world today is no longer conceivable without minimum access to a digital banking system.”
The Council’s Régis Bergonzi further elaborated, saying, “Indeed, more than ever, banking inclusion is part of the process of inclusion in economic and social life. Faced with the constant financialisation of the contemporary world and in times where the dematerialisation of money is increasing, holding a bank account constitutes essential support for carrying out a good number of transactions, and its absence is an additional factor of marginalisation. It can also deprive, for example, the most vulnerable of receiving social benefits, which are not exempt from electronic payment methods.”
The National Council’s recent legislative efforts mark a significant step towards addressing long-standing issues in banking accessibility. With Bill 263, a clear path will be established for individuals and businesses to challenge unjustified account denials and delays. Ultimately, this amendment aims to close certain banking loopholes, making for a more equitable financial system for all.
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