Moneyval compliance: Parliament approves new law on trusts

Monaco has completed another step towards its Moneyval compliance, this time with the adoption of part four of bill no.1084 by the National Council relating to trusts.

During an Extraordinary Session on Thursday 22nd February, the National Council voted on bill no.1084, adapting the legislative provisions relating to the fight against money laundering, the financing of terrorism and the proliferation of weapons of mass destruction (part IV).

“The vote on bill no. 1084 allows us to have legislation that is fully compliant with the recommendations of the FATF (Financial Action Task Force),” said Thomas Brezzo, President of the Legislation Commission.

Part IV is in addition to law no. 1.549 of July 2023 relating to central preventative measures, law no. 1.550 Pt.2 of 10th August 2023 on transparency of legal entities, and bill no. 1080 pt.3 passed in November on repressive measures.

The provisions of the law primarily relate to trusts and deals with certain aspects that could not be covered by the previous legislative reforms, and makes further amendments to laws already reformed.

The text includes the addition of the concept of the trustee’s “domicile”, of keeping updated information on the beneficial owners of trusts for control considerations in Monaco, of the need to keep updated information on professionals who enter into a business relationship or carry out a transaction with the trust that’s been set up or transferred to Monaco, to give authorities access to information on trusts, and the mandatory registration of trusts with the Economic Development Department.

“On this major issue for the image and reputation of the Principality, the elected representatives of the National Council respected their commitments to provide the Principality with effective legislative texts, meeting the best international standards in the fight against money laundering and financing of terrorism,” said the National Council in a public statement.


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