Amendment of 2026 to Annexes A and B of the Monetary Agreement of 29 November 2011 between the European Union and Monaco (Sovereign Order No. 11.883 of 23 April 2026)

Sovereign Order No. 11.883 of 23 April 2026 (JDM No. 8797 of 1 May 2026) amends Annex A (EU legislation applicable to the activities and supervision of credit institutions and to the prevention of systemic risks in payment systems and securities settlement and delivery systems) and Annex B (EU anti-money laundering, EU banking and financial legislation) of the Monetary Agreement concluded on 29 November 2011 between the European Union and the Principality of Monaco.

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→ Amendment to Annex A: EU legislation applicable to the activities and supervision of credit institutions and to the prevention of systemic risks in payment systems and securities settlement and delivery systems

Monaco applies the EU legal acts and rules listed in Annex A that are directly applied by France, or the measures taken by France to transpose them. Six new EU legal acts (EMIR 3 package; CSDR Refit; finalisation of the transposition of the Basel IV prudential framework: CRR3 and CRD 6; Listing Act) are added to Annex A:

◾Regulation (EU) 2024/2987 of the European Parliament and of the Council of 27 November 2024 amending Regulations (EU) No 648/2012 (on over-the-counter (OTC) derivatives, central counterparties (CCPs) and trade repositories – EMIR), (EU) No 575/2013 (on capital requirements – CRR) and (EU) 2017/1131 (on money market funds – MMFs) as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets EMIR 3 (paragraphs 3-3-2, 9-1-2, 9-11, 10-10 of Annex A):

• EMIR 3 is primarily aimed at reducing reliance on third-country clearing houses (particularly those in the United Kingdom) by improving the competitiveness and attractiveness of central clearing within the European Union, as well as adapting and clarifying several existing EMIR obligations (clearing, risk mitigation techniques, reporting, treatment of third-country counterparties, etc.).

◾Directive (EU) 2024/2994 of the European Parliament and of the Council of 27 November 2024 amending Directives 2009/65/EC (UCITS), 2013/36/EU (CRD) and (EU) 2019/2034 (IFD) as regards the treatment of concentration risk arising from exposures towards central counterparties and of counterparty risk in centrally cleared derivative transactions Sectoral Directive associated with EMIR 3 - Transposition by EU Member States by 25 June 2026 at the latest (paragraphs 6-5-2, 11-6 of Annex A)

• Directive (EU) 2024/2994, coordinated with EMIR 3, which aims to gradually reduce European institutions’ reliance on systemic central counterparties (CCPs) in third countries, makes targeted adjustments to several sectoral directives (UCITS, CRD and IFD) in order to incorporate concentration risk management requirements into the prudential obligations applicable to financial entities covered by these directives. Existing regulatory limits are adapted to ensure a level playing field between listed and over-the-counter derivatives.

◾Regulation (EU) 2023/2845 of the European Parliament and of the Council of 13 December 2023 amending Regulation (EU) No 909/2014 as regards settlement discipline, cross-border provision of services, supervisory cooperation, provision of banking-type ancillary services and requirements for third-country central securities depositories and amending Regulation (EU) No 236/2012 CSDR Refit (paragraphs 3-4-2, 14-1-1, 15-3 of Annex A)

• The CSDR Refit Regulation introduces targeted adjustments aimed at improving the efficiency and safety of the settlement of financial instruments in the EU, strengthening the resilience of post-trade infrastructures, and better aligning the regime for central securities depositories (CSDs) with other European legislation (settlement rules, prudential requirements, ancillary banking services, etc.).

◾Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024 amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor CRR3 (paragraphs 9-1-1, 10-9 of Annex A)

• The CRR3 Regulation, together with the CRD 6 Directive (see below), completes the transposition of Basel IV (finalisation of the Basel III standards) and strengthens the resilience of the EU banking sector. It aims to prevent banks’ internal models from underestimating risks, to strengthen capital requirements to withstand economic shocks, to systematically integrate ESG (environmental, social and governance) risks into risk management, and to provide supervisory authorities with more powerful tools for prudential oversight. The new standards will be phased in gradually until 2027.

◾Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks CRD 6 Transposition by EU Member States by 11 January 2027 at the latest (paragraphs 6.5.1, 7.1.1 and 11.5 of Annex A)

• Directive CRD 6, together with Regulation CRR3 (see above), completes the transposition of Basel IV (finalisation of the Basel III standards). It aims to strengthen the supervisory and sanctioning powers of the competent authorities over credit institutions and investment firms subject to Directive 2013/36/EU, to better regulate branches of third-country institutions established in the EU, by supplementing the principle of home country supervision with specific requirements for significant establishments in the EU, and to fully integrate environmental, social and governance (ESG) risks into the prudential framework, both in terms of internal risk management and the powers of supervisors.

◾Regulation (EU) 2024/2809 of the European Parliament and of the Council of 23 October 2024 amending Regulations (EU) 2017/1129 (Prospectus), (EU) No 596/2014 (markets in financial instruments – MiFIR) and (EU) No 600/2014 (market abuse – MAR) to make public capital markets in the Union more attractive for companies and to facilitate access to capital for small and medium-sized enterprises Listing Act (paragraphs 9-3-2, 16-5 of Annex A)

• The Listing Act aims to revitalise European capital markets by making it easier for companies, particularly SMEs, to access market-based financing rather than bank loans. It aims to make initial public offerings and fundraising less costly and less complex, whilst maintaining a high level of investor protection and market integrity through more targeted, standardised and easily accessible information across the European Union. It amends the Prospectus Regulation (creation of new prospectus exemptions, shorter and more readable formats, reduced time limits for making information available, new types of follow-on and EU growth prospectuses, and an increase in the thresholds triggering the prospectus requirement), the MAR Regulation (adjustments to insider information disclosure requirements to reduce administrative burdens) and the MiFIR Regulation (data collection and harmonisation of formats).

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→ Amendment to Annex B: EU legislation on anti-money laundering, banking and financial matters

Monaco shall adopt measures equivalent to the EU legal acts and rules listed in Annex B, which are directly applied by EU Member States or transposed by them. A new EU legal act is inserted into Annex B of the Monetary Agreement:

◾Additions and removals from the EU list of high-risk third countries that have made a high-level written political commitment to remedy the deficiencies identified and have drawn up an action plan with the FATF (reflected in the Monegasque list in Article 1 of Ministerial Order No. 2021-703 of 8 November 2021 concerning the list of States or territories whose anti-money laundering, counter-terrorist financing or anti-corruption regimes exhibit strategic deficiencies:

• Commission Delegated Regulation (EU) 2025/1184 of 10 June 2025 amending Delegated Regulation (EU) 2016/1675 to add Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela to the list of high-risk third countries which have provided a written high-level political commitment to address the identified deficiencies and have developed an action plan with the FATF, and to remove Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda and the United Arab Emirates from that list.

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