Sovereign Order n°10.124 of September 21th 2023 amending Sovereign Order n°2.318 of August 3rd 2009 implementing the terms of the Law n°1.362 of August 3rd 2009, as amended, (the “Law”) was published on September 29th in the Journal de Monaco (the “Sovereign Order”).
This is the second part of the regulatory texts expected to allow the immediate entry into force of the amending provisions of the Law, and adapting Sovereign Order n°2.318 of August 3rd 2009.
For further information on the contributions of Law n°1.549 of July 6th 2023, the implementation of which is specified herein, we invite you to reach for our previous publication:
https://www.alfa-monaco.mc/en/law-n-1-549-of-july-6th-2023-amending-provisions-of-the-laws-on- the-fight-against-money-laundering-terrorism-financing-and-the-proliferation-of-weapons-of-mass- destruction/
Client knowledge is clarified for professionals under the Law. In addition to their activities, risk profile and the origin of their funds, they now take into account their assets to better understand their “socio- economic background”.
The Sovereign Order sets out the “countermeasures” provided for by the Law in the context of business relationships with clients from States or territories considered to be high-risk. Professionals must implement enhanced due diligence obligations, increased monitoring and reporting mechanisms, and restrictions on relations or financial transactions with said States or territories.
The conditions of good repute for professionals under the Law are defined and extended. They apply to the persons ensuring effective management, their partners, their shareholders and their ultimate beneficial owners.
In addition, a questionnaire is sent annually by the Monegasque Financial Security Authority’s (“Autorité Monégasque de Sécurité Financière”) supervision department to the given professionals. The information used to answer said questionnaire is kept for a period of five years.
The definition of ultimate beneficial owner is regulated in certain areas. This is the case for the control of companies by trusts, or for associations, federations of associations and foundations. The latter are subject to appropriate due diligence obligations in their regard.
As regards the “register of ultimate beneficial owners – companies and intercompany partnership” (“Registre des bénéficiaires effectifs – sociétés et GIE”), the information that must be declared is detailed. The procedures for appointing the person in charge of the elementary information and information on ultimate beneficial owners are as well.
Access to this register by the competent authorities is logged, so that each connection, the agent’s identification details and the dates and times of consultation are kept in a computerised format for a period of two years.
Our team remains at your disposal to assist you and answer your questions on the matter.