Legal News Overview / August 2022

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Extension of the exceptional scheme for remote working during the Covid-19 period

The exceptional scheme for remote working during the health crisis for employees, civil servants, State and municipal agents residing in Monaco, France or Italy, which was due to end on 31 August 2022 (see our newsletters #3-2002-June and #4-2022-July), is extended until 31 December 2022.

Reference text: Ministerial Decision of 19 August 2022 (JDM No. 8605 of 26 August 2022).

New economic and legal provisions

The numerous changes resulting from Law No. 1.529 on various economic and legal provisions concern :

• Free transfer tax (submission of foreign trusts);
• Private international law (banking contracts and mandatory provisions of consumer law; temporal application of the IPL Code to international successions)
• Securities and credit law (pledging of structured financial products; sale of financial instruments and structured financial products; bank loans; autonomous guarantee; pledging; assignment of business claims by way of docketing);
• Financial activities (provisional administration of authorised companies; professional certification; classification of customers to meet the constraints of producers of financial instruments located abroad; solicited and unsolicited approaches by unauthorised companies to offer financial services or products);
• Business law (transitional management in the event of the absence, resignation, death or incapacity of the foreign manager of a limited liability company; rules relating to the obligation to disclose the accounting documents of public limited companies and limited partnerships with shares, as well as commercial companies other than joint stock companies).

Reference text: Law No. 1.529 of 29 July 2022 (JDM No. 8603 of 12 August 2022).

Evolution of the status of co-ownership of built properties

Law No. 1.531 modernises the provisions of Law 1.329 of 8 January 2007 on co-ownership of built properties, in order to improve administration and facilitate the decision-making process at the general meeting. New derogations are applicable to small co-ownerships with no more than ten lots, and to “two-owner co-ownerships”.

Reference text: Law No. 1.531 of 29 July 2022 (JDM No. 8603 of 12 August 2022).

Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (CETS No. 198), enforceable in Monaco

The so-called Warsaw Convention of 16 May 2005 (CETS No. 198), ratified on 23 April 2019, has become enforceable in Monaco. Its entry into force with regard to Monaco is fixed as from 1 August 2019.

The Warsaw Convention updates and extends the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime of 8 November 1990 (ETS No. 141, known as the Strasbourg Convention, made enforceable in Monaco by Sovereign Order No. 15. 452 of 8 August 2002), in order to take account of the fact that terrorism is no longer financed solely by money laundering (“dirty” money), but also by legitimate activities (“clean” money, collected for example through charitable organisations or legitimate business activities).

It is intended to meet the need for rapid access to financial or asset information held by criminal organisations, including terrorist groups.

Reference text: Sovereign Order No. 9.393 of 29 July 2022 (JDM No. 8604 of 19 August 2022).

Partial withdrawal of a reservation to the Council of Europe Criminal Law Convention on Corruption (ETS No. 173)

The Criminal Law Convention on Corruption of 27 January 1999 (ETS No. 173, executed in Monaco by Order No. 1089 of 4 May 2007), was ratified on 19 March 2007 and has been in force in Monaco since 1 July 2007.

The Principality has partially withdrawn its reservation to Article 17 of the Convention (as from 1 April 2022) concerning the establishment of its jurisdiction when the perpetrator of a criminal offence covered by the Convention is one of its nationals, one of its public officials or one of its members of national public assemblies, or when the offence involves one of its public officials or members of its national public assemblies or any person referred to in Articles 9 to 11 of the Convention, who is at the same time one of its nationals.

Reference text : Sovereign Order No. 9.394 of 29 July 2022 (JDM No. 8604 of 19 August 2022).

Decommissioning, on the esplanade des Pêcheurs, Quai Rainier Ier Grand Amiral de France and part of the Quai Antoine Ier, of a parcel of land belonging to the public domain of the State

The Law No 1.530 of decommissioning is part of the global real estate operation on the site of the Esplanade des Pêcheurs of Port Hercule, which must meet the constraints required for the organisation of the Grand Prix motor races.

Following a dispute arising from the initial project, the Supreme Court ordered the State to pay compensation to the developer (decisions TS 2018-08 of 29 November 2018 and TS 2018-08 of 25 June 2020). Law No. 1.530 validates the decommissioning of the plot of land belonging to the State’s public domain on which a revised real estate operation will be built. The transfer of the land to the developer entails the waiver of its claim against the State.

Reference text: Law No. 1.530 of 7 July 2022 (JDM No. 8603 of 12 August 2022).

Modification of the statutes of the Sovereign Family

Sovereign Order No. 5.344 of 2nd June 2015 on the statutes of the Sovereign Family, as amended, sets out the conditions for the application of Article 10 of the Constitution governing the succession to the Throne. The reform modifies the rules governing the exercise of the Regency.

The Council of Regency now benefits from the delegation of powers in the event of the death, abdication or temporary or definitive impediment of the Prince Regnant when the Hereditary Prince is a minor (prior to this reform, the Regency was to be exercised, depending on the Prince’s spouse or the closest adult heir to Him in the order of succession, and only if it could not be ensured by one of the members of the Sovereign Family, by the Council of Regency). Likewise in the event of the death of the Hereditary Prince, if the closest heir in the order of succession is a minor.

The spouse of the Prince Regnant who is not de jure or de facto separated becomes a member and President of the Council of Regency. If the spouse of the Prince Regnant is prevented from attending or separated de jure or de facto, the chairmanship is assumed by the eldest of the four members appointed by Sovereign Decision, the other members of the Council of Regency being the President of the Crown Council, the Secretary of State and the President of the Council of State. Only two of its members may not be of Monegasque nationality.

It is now the responsibility of the Council of Regency (previously the Regent) to take all necessary measures, including the custody of the hereditary Prince and the minor Prince’s Children.

The Internal Regulations of the Council of Regency organise its functioning.

Reference text: Sovereign Order No. 9.389 of 29 July 2022 (JDM No. 8603 of 12 August 2022).

Exceptional support bonus for employees in the hotel and catering sector (“purchasing power” bonus)

Employers in the Principality in the hotel and catering sector falling under the NAF activity codes 5510Z, 5610A and 5630Z, have the possibility of paying an exceptional support bonus to all or some of their employees affiliated to the Caisse de Compensation des Services Sociaux (CCSS), who are effectively employed and receive a gross monthly salary of less than €4,500.

This “purchasing power” bonus is exempt from social security contributions (derogation to article 15 of the CCSS internal regulations) and must be paid in one go and no later than 31 October 2022.

Reference text: Ministerial Order No. 2022-405 of 1 August 2022 (JDM No. 8602 of 5 August 2022).

Approval of the professional standards of the Ordre des Experts comptables

The Monegasque Standards of Professional Practice 1 to 26 of the Ordre des Experts-Comptables, recently modified by the Council of the Ordre on 21 March 2022 (Standard 23), have been approved by Ministerial Order. As a reminder, the exercise of the professions of Chartered Accountant and Certified Accountant is governed by Law No. 1.231 of 12 July 2000.

Reference text: Ministerial Order No. 2022-404 of 1 August 2022 (JDM No. 8602 of 5 August 2022).

Regulatory texts for the application of Law No. 1.516 of 23 December 2021 on non-conventional practices contributing to well-being

Law No. 1.516 provides a framework for health care practices that are not scientifically recognised by conventional medicine, the provisions of which will come into force on 8 January 2023. The three ministerial orders published implement articles 3 and 4 of Law No. 1.516:

• Rules of operation of the Advisory Commission which is responsible for issuing an opinion on the list of authorised non-conventional practices, and when, in the context of the examination of an application for authorisation, the petitioner is required to provide evidence of the qualifications required by Law;
• List of the members and president (Director of Health Action) of the Advisory Commission, appointed as of 1 August 2022 for a period of three years;
• Rules relating to the publicity that must be respected by any person authorised to exercise a non-conventional practice involved in well-being.

Reference text: Ministerial Orders Nos. 2022-411, 2022-412 and 2022-412 of 1 August 2022 (JDM No. 8602 of 5 August 2022).

Ceiling for expenses and maximum amount of reimbursement of election expenses, and television election campaign

For national elections (National Council), the ceiling for expenses is set at €325,000 per list of candidates. The maximum amount of reimbursement depends on the percentage of validly cast votes. The next elections for national councillors will be held in February 2023. The coordination committee of the televised electoral campaign, responsible for ensuring its proper conduct, is composed of a magistrate, chairman, appointed by the Secretary of State for Justice, Director of Judicial Services, the Chairman of the Commission for the Control of Nominative Information, and the Head of the General Inspectorate of the Administration (full members). The committee is assisted by the Director of Communication.

For the municipal elections (Municipal Council), the ceiling for expenses is set at €66,000 for a candidate declared without a list of members. The maximum amount of reimbursement is set at €5,200 per candidate for lists of 8 to 15 candidates (maximum reimbursement of €78,000), a flat-rate reimbursement of €35,000 for lists of 2 to 7 candidates, and €17,000 for a declared candidate without a list. The next elections for local councillors will take place in March 2023.

Reference text: Ministerial Decree No. 2022-417 of 1 August 2022 (JDM No. 8602 of 5 August 2022), Ministerial Decree No. 2022-418 of 1 August 2022 (JDM No. 8604 of 19 August 2022).

Regulatory texts relating to the new competences of midwives introduced by Law No. 1.525 of 16 May 2022

As a reminder (see our Newsletter #2-2022), Law No. 1.525 of 16 May 2022 modified certain provisions relating to the profession of midwife provided for by the Ordinance of 29 May 1894, in order to provide them with new competences.

The four ministerial orders published set out the lists of:

• vaccinations that midwives may prescribe and perform;
• the medicines they can prescribe;
• medical devices that they can prescribe;
• sexually transmitted infections for which they can prescribe screening or treatment.

Reference texts: Ministerial Orders Nos. 2022-422, 2022-423, 2022-424, 2022-425 (JDM No. 8604 of 19 August 2022).