As part of efforts to bring Monaco up to scratch with Moneyval’s high international standards, civil companies based in the Principality are being reminded of the need to register their “beneficial owners” or face consequences down the line. 

After the January 2023 Moneyval report requesting Monaco make more effort to prevent and investigate any cases of money laundering and the financing of terrorism within its borders, the Principality acted swiftly, setting up a dedicated task force and greenlighting new legislation.   

As part of this new conformity drive, the government also launched a national action plan that includes an information campaign aimed at civil companies – or sociétés civiles (SC), the type of company typically used for civil, agricultural, freelance and intellectual professions – to explain the need to declare their “beneficial owners”.  

WHAT IS A BENEFICIAL OWNER 

The term beneficial owner relates to the person or people who directly or indirectly hold at least 25% of a company’s capital or voting rights, have control over a company by another means or are the person or people who legally represent the company, such as a managing director or manager.  

HOW TO DECLARE 

The request to register these individuals must be made directly to the Department of Economic Development, which is open on weekdays from 9.30am to 5pm.  

The forms can be found on the government portal under the “Declaring a Beneficial Owner” section. The process is free of charge.  

The authorities are reaching out to companies with reminders to prompt quick action. If they fail to comply, communications with the Court of First Instance will be initiated. 

For companies already in the special register of civil companies, but without up-to-date information on beneficial owners, the Department of Economic Development is asking for those updates to be made as soon as possible.  

Make sure you’re never left out of the conversation.  

Sign up for the Monaco Life newsletter, and follow us on Facebook,  Twitter,  Instagram and LinkedIn.  

Photo source: Scott Graham, Unsplash