Monaco strengthens digital security with bold new data protection legislation

Monaco has taken a significant step towards strengthening personal data protections within the Principality by adopting Draft Law No. 1.054, which will lead to the creation of a dedicated Data Protection Authority, establish stronger safeguards for international and European data transfers, enhance individual rights and provide increased protections for minors’ data.

Formally adopted by a unanimous vote during the National Council’s Public Legislative Session on November 28th, the new draft law brings the Principality into line with the highest European and international standards, marking a new era for data security in Monaco.

The legislation not only enhances the protection of individuals’ personal information, particularly minors’ data, but also reinforces Monaco’s economic attractiveness by creating a safer digital environment for businesses and residents.

In a statement following the vote, Monaco’s Minister of Foreign Affairs and Cooperation, Isabelle Berro-Amadeï, thanked the Council for the constructive discussions that helped shape this landmark 118-article text, which will apply to both the public and private sectors.

She also emphasised that the legislation is a critical step in ensuring a balance between innovation and fundamental rights in an increasingly data-driven society.

“In the digital age, it is not a question of prohibiting the circulation of personal data altogether or hindering innovation or technological advances based on the use of such data, which in turn can drive economic growth,” noted Berro-Amadeï in her speech directed at the Council. She added that forward-thinking legislation, such as Monaco’s Draft Law No. 1.054, “seeks to strike a balance between the protection of individuals, the economic necessity of allowing free data flows—and therefore its collection and use—and certain exemptions when legal requirements, such as public security or the public interest, are at stake”.

The seasoned civil servant went on to quote Prince Albert II of Monaco, saying, “Monaco in a digital world is a model based on attention to individual needs, the excellence of quality of life, and the invention of new standards. A model centred on humanity, ethics, responsibility, and security, protecting against the risks of digital abuses.”

She elaborated, adding, “These words perfectly illustrate the vision that the Principality holds in the digital age: technological development that is both bold and respectful of individual freedoms. Draft Law No. 1.054 fits directly into this vision, enabling the combination of innovation, economic attractiveness, and rights protection.”

Key features of Draft Law No. 1.054

The law introduces several transformative measures designed to bolster data protection, including the creation of a dedicated Data Protection Authority to replace the Commission for the Control of Personal Data; enhanced rights for individuals, particularly minors’ data; the elimination of most prior declaration requirements, simplifying compliance for organisations; increased accountability for data controllers, and the mandatory appointment of Data Protection Officers; stricter regulations governing the use of criminal data by administrative and judicial authorities; stronger safeguards for international and European data transfers; and tougher penalties for non-compliance, including administrative fines of up to €10 million.

While Monegasque legislation seeks to mirror similar measures set out by the European Commission, Berro-Amadeï noted that there will be some differences regarding sanctions. The fines that the future Data Protection Authority will be able to impose will increase tenfold, from the current ceiling of €900,000 to €10 million. However, this remains lower than the maximum set out in the EU’s General Data Protection Regulation, due to the “specificities of Monaco’s economic structure”.

The National Council also voted to adopt Draft Law No. 1.053, which approves the ratification of the Protocol amending Convention 108. Known as Convention 108+, this is the only legally binding international instrument for data protection. Monaco’s forthcoming ratification of this protocol, which the Principality signed in 2018, will contribute to its entry into force globally.

Supporting stakeholders

To facilitate a smooth implementation of the new legislation, the Monaco Government will host a free information seminar on December 11th at the Lycée Rainier III. This session will provide guidance to state services, public institutions, private entities with public-interest missions and public service concessionaires on their obligations under the new law.

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Photo source: Conseil National de Monaco