Amendment of Annexes A and B to the Monetary Agreement of 29 November 2011 between the European Union and Monaco (Sovereign Order no. 11.278 of 18 June 2025)

Sovereign Order no. 11.278 of 18 June 2025 (JDM no. 8754 of 4 July 2025) amends Annex A (EU legislation applicable to the activity and supervision of credit institutions and to the prevention of systemic risk in payment and securities settlement systems) and Annex B (Prevention of money laundering, banking and financial EU 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 activity and supervision of credit institutions and to the prevention of systemic risk in payment and securities settlement systems

Monaco applies the EU legal acts and rules listed in Annex A which are applied directly by France or the provisions taken by France to transpose them. Three new EU legal acts are inserted into Annex A of the Monetary Agreement:

• Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (DORA). The Regulation establishes uniform rules for the security of networks and information systems of financial sector entities in order to resist, respond to and recover from any disruption or threat involving information and communication technologies (ICT): ICT risk management; incident reporting; resilience testing; ICT third-party risk management; oversight framework of critical ICT third-party service providers.
• Regulation (EU) 2022/2036 of the European Parliament and of the Council of 19 October 2022 amending Regulation (EU) No 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institutions with a multiple-point-of-entry resolution strategy and methods for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities. The Regulation modifies the rules for calibrating the minimum requirement for own funds and eligible liabilities (MREL) of global systemically important institutions (G-SIIs) which, in the event of failure, would apply a resolution strategy under which several entities of the group could be subject to resolution (multiple-point-of-entry resolution strategy), to comply with the international Total Loss-absorbing Capacity (TLAC) standard of the Financial Stability Board (FSB), the main objective of which is to ensure that a bank in difficulty can be recapitalised without recourse to public funds. The aim is to better ensure that the loss absorption and recapitalisation of banks occurs through private means when those banks become financially unviable and are, subsequently, placed in resolution.
• Directive (EU) 2024/1174 of the European Parliament and of the Council of 11 April 2024 amending Directive 2014/59/EU and Regulation (EU) No 806/2014 as regards certain aspects of the minimum requirement for own funds and eligible liabilities (MREL) (Daisy chains II). The Directive introduces a definition and a regime for “liquidation entities" (entities which do not, in principle, require the setting of a MREL requirement because their possible failure would not be dealt with by the use of resolution powers; these may, for example, be subsidiaries within resolution groups), new cases in which resolution authorities may choose to set the internal MREL requirements of an intermediate entity on a so-called "consolidated" basis rather than on an individual basis with deductions.

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→ Amendment of Annex B: EU legislation on the prevention of money laundering, banking and financial matters

Monaco adopts measures equivalent to the EU legal acts and rules listed in Annex B, which are applied directly by the EU Member States or which the latter transpose. Nine new EU legal acts are inserted into Annex B of the Monetary Agreement:

— Preventing money laundering:

The EU has adopted a wide-ranging package of measures to strengthen its legal framework for combating money laundering and terrorist financing (AML/CFT), and resolve the main difficulty of the fragmented approach across countries due to the lack of direct applicability of the provisions of the (Consolidated) Anti-Money Laundering Directive (EU) 2015/849. In order to obtain uniform conditions of application between countries, the rules currently covered by the said Directive will be covered by Regulation, of direct applicability. Monaco implements the EU AML/CFT package:

• Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (from 2027). Deadline for implementation in Monaco: 31 December 2028. The Regulations unify the rules between countries, directly applicable to the private sector: internal policies, procedures and controls of obliged entities; customer due diligence; beneficial ownership transparency; reporting obligations; measures to mitigate risks deriving from anonymous instruments (anonymous accounts, bearer shares and bearer share warrants; limit of €10 000 applicable to cash payments in exchange for goods or services (a lower amount may be set at national level); cooperation between financial intelligence units (FIUs) and the European Public Prosecutor's Office, the European Anti-Fraud Office (OLAF).
• Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive(EU) 2019/1937, and amending and repealing Directive (EU) 2015/849 (from 2027). Deadline for implementation in Monaco: 31 December 2028. The 6th Directive includes: national measures in sectors exposed to AML/CFT risks (Where a Member State identifies that, in addition to obliged entities, entities in other sectors are exposed to AML/CFT risks, it may decide to apply all or part of Regulation (EU) 2024/1624 to those additional entities); Requirements relating to certain service providers (licensing or registering of currency exchange and cheque cashing offices, trust or company service providers, regulation of providers of gambling services); Requirements relating to the granting of residence rights in exchange for investment (such as capital transfers, purchase or renting of property, investment in government bonds, investment in corporate entities, donation or endowment of an activity contributing to the public good and contributions to the state budget) where permitted under national law; registration, identification and checks on the senior management and beneficial owners of certain obliged entities (persons who effectively manage the business of currency exchange and cheque cashing offices, trust or company service providers, providers of gambling services, and financial mixed activity holding companies); identification of AML/CFT risks at Union and Member State level; set-up of and access to beneficial ownership and bank account registers and access to real estate information; responsibilities and tasks of Financial Intelligence Units (FIUs) and of bodies involved in the supervision of obliged entities; cooperation between competent authorities and cooperation with authorities covered by other Union legal acts.
• Regulation (EU) 2024/1620 of the European Parliament and of the Council of 31 May 2024 establishing the Authority for Anti-Money Laundering and Countering the Financing of Terrorism and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010. Deadline for implementation in Monaco: 31 December 2028. The mission of the Anti-Money Laundering and Combating the Financing of Terrorism Authority (AMLA) (located in Germany) is to contribute to the implementation of uniform rules at European level. Its tasks: monitoring and assessing AML/CFT threats and risks in the EU and third countries; collecting, analysing and exchanging information with a network of national and European supervisors; improving cooperation and information exchange between Financial Intelligence Units (FIUs); organising, launching and supporting joint analyses by FIUs of suspicious cross-border transactions or activities; cooperation with other EU institutions, bodies and agencies with competence in combating serious criminal offences, such as the European Public Prosecutor's Office, the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol) and the European Anti-Fraud Office (OLAF); maintenance of a central database, the contents of which are made available to national and European supervisors; AML/CFT publications and training; informing the European Commission if a State fails to apply Directive (EU) 2024/1640 correctly; specific supervision and control of credit institutions and individual and collective financial institutions with a high-risk profile selected for direct supervision ("selected obliged entities"), of the financial and non-financial supervisors of all other obliged entities, and of the national FIUs.
• Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (Travel Rule/TFR). Deadline for implementation in Monaco: 31 December 2026. The Regulation recasts Regulation (EU) 2015/847 applicable to transfers of banknotes and coins, scriptural money and electronic money so that it also covers transfers of virtual assets, in line with the June 2019 changes to the FATF standards on new technologies. It establishes rules on: information on originators and beneficiaries of funds accompanying transfers of funds, in any currency; information on originators and beneficiaries of crypto-assets accompanying transfers of crypto-assets; rules on policies, procedures and internal controls to ensure the implementation of restrictive measures.

The other AML/CFT legal acts included in Annex B concern the additions to and deletions from the EU 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 FATF (reflected in the Monegasque list in Article 1 of Ministerial Decree no. 2021-703 of 8 November 2021 concerning the list of States or territories whose anti-money laundering, the financing of terrorism or corruption. Deadline for implementation in Monaco: 31 December 2025):

• Commission Delegated Regulation (EU) 2023/410 of 19 December 2022 amending Delegated Regulation (EU) 2016/1675 as regards adding the Democratic Republic of the Congo, Gibraltar, Mozambique, Tanzania and the United Arab Emirates to Table I of the Annex to Delegated Regulation (EU) 2016/1675 and deleting Nicaragua, Pakistan and Zimbabwe from that table.
• Commission Delegated Regulation (EU) 2023/1219 of 17 May 2023 amending Delegated Regulation (EU) 2016/1675 as regards adding Nigeria and South Africa to the table in point I of the Annex and deleting Cambodia and Morocco from that table.
• Commission Delegated Regulation (EU) 2023/2070 of 18 August 2023 amending Delegated Regulation (EU) 2016/1675 to add Cameroon and Vietnam to the list of high-risk third countries.
• Commission Delegated Regulation (EU) 2024/163 of 12 December 2023 amending Delegated Regulation (EU) 2016/1675 as regards the deletion of the Cayman Islands and Jordan from the table in point I of the Annex.

— Banking and financial legislation:

• Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (MiCA). Deadline for implementation in Monaco: 31 December 2026. The Regulation establishes uniform rules for issuers of crypto-assets that have so far not been regulated by other EU financial services acts and crypto-asset service provider: transparency and disclosure requirements for the issuing, the offering to the public and the admission of crypto-assets to a trading platform; authorisation and supervision of crypto-asset service providers and issuers of asset-referenced and electronic money (e-money) tokens; operation, organisation and governance of the issuers and crypto-asset service providers; protection for holders of crypto-assets and clients of service providers; measures to prevent insider dealing, unlawful disclosure of inside information and market manipulation.

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