Monthly Legal Overview (July 2026)

99 AVOCATS ASSOCIÉS is pleased to present a review of legal developments in the Principality of Monaco in July 2026 (texts published in the Journal de Monaco, legislative work, and other publications) and a selection of legal news in European Union and France on protection of minors, artificial intelligence (AI), environment, commercial solicitation, combating VAT fraud.

TEXTS PUBLISHED IN THE JOURNAL DE MONACO

AML/CFT-P-C

◾New Monegasque list of high-risk countries or territories

Ministerial Order No. 2026-433 of 28 July 2026 (JDM No. 8810 of 31 July 2026) adds Bosnia and Herzegovina and Iraq to the list of countries or territories with strategic deficiencies in their regimes for combating money laundering, the financing of terrorism and the proliferation of weapons of mass destruction, and corruption (AML/CFT-P-C) (corresponding to the FATF "grey list").

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TAXATION

◾VAT: Amendment to the Code of Taxes on Turnover

Sovereign Order No. 12.056 and Ministerial Order No. 2026–431 of 23 July 2026 (JDM No. 8810 of July 31, 2026) incorporate into the Monegasque Code of Taxes on Turnover and its Annex the French measures relating to value-added tax (VAT): extension of the scope of the reduced rate of 5.5% to new goods and services; strengthening of the regulatory framework for VAT refund operators handling sales to non-resident travelers; selimination of the exclusion from the right to deduct VAT on goods and services used for advertising; adjustment of the VAT exemption thresholds for new businesses.

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PUBLIC • ADMINISTRATIVE

◾Prohibition on the use of open flames and similar devices in dance halls, gaming halls, restaurants and drinking establishments

Ministerial Order No. 2026-427 of 27 July 2026 (JDM No. 8810 of July 31, 2026) prohibits the use of open flames and similar devices in dance halls, gaming halls, restaurants, and drinking establishments, unless an exemption is granted by the Department of Foresight, Urban Planning and Mobility. It amends Annex 3 "Regulations concerning specific provisions applicable to buildings based on their intended use" of Ministerial Order No. 2018-1079 of 21 November 2018, establishing regulations on general safety principles regarding fire and panic risks in buildings.

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◾Transitional provisions for the implementation of the updated rules on public procurement by the State

Sovereign Order No. 12.054 of 23 July 2026 (JDM No. No. 8810 of 31 July 2026) sets out transitional provisions for Sovereign Order No. 11.976 of 18 June 2026, which amended Sovereign Order No. 7.264 of 20 December 2018, relating to competitive tendering, public procurement contracts for supplies and services exceeding €200,000 excluding VAT, and the criteria for awarding public procurement contracts.

In addition, Ministerial Order No. 2026-426 of 23 July 2026 (JJDM of the same day) sets out transitional provisions regarding the amendments made by Ministerial Order No. 2026-335 of 18 June 2026 to Ministerial Order No. 2022-708 of 12 December 2022 concerning the objective criteria for contract award.

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◾New regulations governing Monegasque driving licences

Sovereign Order No. 11.966 (amending the Highway Code), Ministerial Order No. 2026-336 of 18 June 2026 and its Annexes (JDM No. 8807 of 10 July 2026) introduce the “ID-1” format driving licence in Monaco in accordance with the ISO/IEC 7810 standard, featuring a security feature (in the form of a visible electronic stamp), with a maximum administrative validity period of 15 years, and overhaul theoverhaul the provisions regarding the procedures for applying for, issuing, renewing and replacing driving licences, rules on medical fitness to drive and examination.

A new online service on monguichet.mc has been available since 4 July, enabling driving licence renewals to be carried out online (Government press release of 6 July 2026).

◾End of the State’s monopoly on matches

Sovereign Order No. 12.055 of 23 July 2026 (JDM No. 8810 of 31 July 2026) repeals the Sovereign Order of 12 December 1891 on the manufacture and sale of matches and amends Sovereign Order No. 4.225 of 20 March 2013, thereby bringing to an end the State of Monaco’s exclusive rights regarding the import, export and distribution of matches, via the “Régie des Tabacs et Allumettes” (Régie of Tobacco and Matches), which becomes the “Régie Monégasque des Tabacs et Monopoles Associés” (Monégasque Régie of Tobacco and Associated Monopolies : tobacco and related products, electronic devices and all types of related accessories).

◾New remit for the Monegasque Screening Centre ("Centre Monégasque de Dépistage")

Sovereign Order No. 12.053 of 23 July 2026 (JDM No. 8810 of 31 July 2026), amending Article 2 of Sovereign Order No. 3.836 of 5 July 2012, entrusts the Monegasque Screening Centre with the new remit “9) to procure, hold, monitor, manage, dispense and administer the medicines required for the prevention and treatment of sexually transmitted infections and for emergency contraception, as well as for the treatment of any serious adverse reactions relating to the administration of the aforementioned medicines, under the responsibility of a doctor at the Centre.”

◾Monaco under the "vigilance" drought alert level

The Ministerial Decision of 20 July 2026 (JDM No. 8809 of 24 July 2026) introduced, with effect from 22 July 2026, the "vigilance" drought alert level defined in Article O. 322-4-4 of the Environment Code (official information and encouragement for major water consumers to conserve water, raising public awareness of the rules for the proper use of water), due to “the decline in water resource abstraction levels in the Roya Valley”, the “placing of the [French] neighbouring department on alert by prefectural order of 1 June 2026”, and “weather forecasts [which] are unlikely to reverse these trends in the short term”.

SOCIAL PROTECTION

◾Pensions for surviving spouses in the public and private sectors

Law No. 1.594 of 30 June 2026 on the survivor’s pension for the surviving spouse in the public sector and Law No. 1.595 of 30 June 2026 on the survivor’s pension for the surviving spouse in the private sector (JDM No. 8807 of 10 July 2026) share the common objective of ensuring equal treatment for surviving spouses, regardless of gender, regarding eligibility for survivor's pensions ("pension de réversion", the portion of the deceased insured person's retirement pension that is paid to their surviving spouse).

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◾Granting of close carer's ("proche aidant") status (older person)

Ministerial Order No. 2026-381 of 9 july 2026 (JDM no. 8808 of 17 july 2026), implementing Law no. 1.592 of 18 june 2026, lays down the arrangements governing the granting of close carer's status by the Director of health and social affairs, following the opinion of a consultant geriatrician appointed by the Director, for a maximum period of one year, renewable.

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PERSONAL DATA PROTECTION • JUDICIAL

◾Appointment of the Judicial Data Protection Officer

Order No. 2026–28 of the Secretary of State for Justice of 1 July 2026 (JDM No. 8807 of 10 July 2026) appoints the Judicial Data Protection Officer ("Délégué judiciaire à la protection des données personnelles") of the Directorate of Judicial Services ("Direction des Services Judiciaires"), responsible for supervising the processing of personal data carried out by the courts and the Public Prosecutor in the exercise of their judicial functions, as well as processing carried out in the context of international mutual legal assistance proceedings, which fall outside the remit of the Monegasque Personal Data Protection Authority (APDP), in accordance with Article 37 of Law No. 1.565 of 3 December 2024 on the protection of personal data.

LEGISLATIVE WORK

PUBLIC • REAL ESTATE

◾Bill No. 1128 on health regulations for buildings, decent housing, and the enforcement of safety and sanitation standards for real property and facilities (received)

Government Bill No. 1128, received by the Parliament on 3 July, aims to ensure dignified, high-quality housing in the Principality: the design, construction, and maintenance of buildings in a manner that does not endanger the health and safety of individuals; the obligation of a landlord of a dwelling that serves as the tenant’s primary residence to provide the tenant with decent housing that meets established requirements; strengthening enforcement of safety and health standards for real property; and tougher criminal penalties.

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INTERNATIONAL TAXATION

◾Bill No. 1129 on the minimum taxation of multinational enterprise groups (received)

Government Bill No. 1129, received by the Parliament on 28 July, provides for the creation of a Qualified Domestic Minimum Top-up Tax (QDMTT), distinct from the existing tax on benefits, aimed at ensuring a minimum effective tax rate of 15 per cent on activities carried out in Monaco by entities belonging to multinational enterprise groups that fall within the scope of the Global Anti-Base Erosion Rules (Pillar Two) (GloBE rules) of the Inclusive Framework on BEPS (Base Erosion and Profit Shifting) of the OECD (Organisation for Economic Co-operation and Development) and the G20.

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IT • ADMINISTRATIVE • JUDICIAL

◾Draft law No. 281 on strengthening measures to combat and prevent online hate speech (follow-up)

The Government will announce its decision to convert parliamentary Draft law No. 281 into a Government bill, or to stop the legislative procedure, by 30 December 2026 at the latest (Legimonaco, News, 21 July 2026). As a reminder, it is proposed to establish administrative and judicial procedures for the removal of unlawful content and to introduce the concepts of "AI systems" and "deepfake"("hypertrucage") into Monegasque law.

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OTHER PUBLICATIONS

PERSONAL DATA PROTECTION

◾APDP: Information sheet on Monegasque Standard Protection Clauses (CTP) for transfers of personal data to countries that do not provide an adequate level of protection, currently under adoption

On 10 July, the Personal Data Protection Authority (APDP) published a new information sheet “Transfer of personal data governed by Standard Protection Clauses”, stating that the process is currently underway to adopt, on the one hand, comprehensive CTP specific to Monaco, and, on the other hand, an addendum to the European Union Standard Contractual Clauses (SCC) ensuring that the rights of the individuals concerned in Monaco are effectively upheld.

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◾APDP: Reminder on the obligation to notify data breaches without undue delay and to document them

The APDP reminds data controllers of their obligation notify personal data breaches without undue delay, and where possible within a maximum of 72 hours of becoming aware of them (Article 32 of Law No. 1.565), "even where not all information relating to the incident is known; such information may be communicated in stages." It clarifies that "awaiting the results of ongoing technical analyses" and "the finalisation of internal investigations" cannot justify any delay. It specifies that "awaiting the results of ongoing technical analyses" or "the completion of internal investigations" may not justify a delay. It further emphasises the obligation "to document the precise date and time at which the data breach came to the data controller's attention, as well as any steps taken between that date and the date of notification.". (APDP publication of 16 July 2026)

PUBLIC

◾Accessibility of information relating to the financing of election campaigns

The Commission for the Verification of Campaign Accounts ("Commission de Vérification des Comptes de Campagne") (established by Law No. 1.389 of 2 July 2012, as amended) has launched its new website https://comptescampagne. gouv.mc aimed at candidates in national and local elections and their financial representatives to assist with their administrative procedures, as well as the citizens: institutional information, practical resources and reference documents (Government press release of 23 July 2026).

AML/CFT

◾Publication of the Financial Action Task Force (FATF) updated assessment for Monaco

The FATF’s updated assessment of 19 June 2026 now published, highlights the reforms implemented in Monaco with regard to combating money laundering and the financing of terrorism (AML/CFT): (1) improved understanding of risks; (2) sustained increase in outbound requests for cooperation; (3) stricter enforcement of sanctions in the event of non-compliance; (4) the completion of the resourcing of the Monegasque Financial Security Authority (AMSF) and improvements to suspicious transaction reports; (5) improvements to judicial efficiency; (6) an increase in the seizure of assets suspected of originating from criminal activities.

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INTERNATIONAL

◾Monaco: Renewal of the partnership with the OSCE to combat human trafficking

On 8 July, Monaco and the Organisation for Security and Co-operation in Europe (OSCE) renewed the funding agreement for the programme "Combating trafficking in human beings: support for inter-institutional collaboration through national simulation-based training" (Government press release of 15 July 2026). It should be noted that Sovereign Order No. 605 of 1 August 2006, as amended, criminalises human trafficking, in accordance with Monaco international commitments within the framework of the UN and the Council of Europe.

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◾France: Ban on social media access for minors under 15

French Draft Law No. 339, aimed at protecting minors from the risks associated with social media use, adopted on 21 July 2026, procvides for a ban on access to online social media services for minors under the age of 15 starting 1 September 2026, and requires raising awareness among pupils, staff, and parents regarding the harmful effects of excessive screen exposure and the addictive nature of social media.

As a reminder, in Monaco, the Parliament similarly called upon the Government to draft a bill aimed at banning the use of certain digital platforms by minors under the age of 15 (Resolution No. 36, adopted on 12 May 2026).

◾European Union: Digital Omnibus on artificial intelligence (AI)

Regulation (EU) 2026/1744 of 8 July 2026 (Digital Omnibus AI) (OJEU of 24 July 2026), which entered into force on 27 July 2026, introduces targeted amendments to Regulation (EU) 2024/1689 of 13 June 2024 establishing harmonised rules on artificial intelligence (AI Act), aimed at addressing certain implementation issues, whilst ensuring that robust safeguards for the safety of individuals and fundamental rights are maintained, in particular: an extension of compliance deadlines for high-risk systems, a ban on nudification applications, a relaxation of administrative burdens on businesses, and a strengthening of the powers of the AI Office.

The AI Act has extraterritorial scope, targeting providers (developers) and deployers (users in the course of a professional activity) established or located in a third country who place AI systems or models on the market or put them into service in the EU, or where the outputs produced by the AI system are used in the EU.

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◾European Union: Ban on the destruction of shoes, clothing and fashion accessories

Since 19 July, large enterprises in EU have been prohibited from destroying unsold clothing, clothing accessories and shoes, unless a specific exemption applies (health, hygiene and safety reasons; repair of damage not being cost-effective; products unsuitable for national and EU technical standards, for reuse or remanufacturing; products not accepted as donations; counterfeit products; disposal is the option with the least negative environmental impact) (Article 25 and Annex VII of Regulation (EU) 2024/1781 on the ecodesign of sustainable products "ESPR"). The application of the ban to medium-sized enterprises is deferred until 19 July 2030. It does not apply to micro and small enterprises.

◾France: Reducing pollution caused by "ultra fast fashion"

French Law No. 2026-602 of 8 July 2026, aimed at reducing the environmental impact of the textile industry (JORF No. 0159 of 9 July 2026), requires ultra fast fashion platforms (outside the European Union, Iceland, Liechtenstein and Norway) to display awareness-raising messages (on sustainable consumption practices, and social, environmental and health impacts), increases financial penalties from 1 September 2026 (from 25 centimes to 12 euros per item in 2026, and from 2 to 20 euros from 2030 onwards), bans all media advertising promoting ultra fast-fashion items or brands from 1 January 2027, and removes the option to claim a tax credit for donating unsold stock to associations (60 per cent tax relief).

◾France: Commercial telephone solicitation banned by default across all business sectors

French Decree No. 2026-662 of 23 July 2026 (JORF No. 0172 of 25 July 026) prohibits commercial telephone solicitation as a general rule for companies in all business sectors starting August 11, 2026. Exceptions apply if the call relates to an existing contract with the company or if the company has obtained prior consent to be contacted for commercial solicitation—consent that must be given "freely" and in an "informed" manner, and through a "clear, affirmative act." The "Bloctel" opt-out service will therefore be discontinued. However, this prohibition shall not apply to prospecting relating to the sale of subscriptions to newspapers, periodicals or magazines.

◾European Union: sharing tax information to combat VAT fraud

Regulation (EU) 2026/1743 of 10 July 2026 (OJEU of 27 July 2026), amending Regulation (EU) No 904/2010 on administrative cooperation and combating fraud in the field of value added tax (VAT), grants the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) regulated access to European Union databases ("VIES" VAT information exchange system, "CESOP" central electronic system of payment information). This is coupled with the proactive transmission of specific Eurofisc analysis reports identifying suspected cases of cross-border fraudulent schemes. The system will be implemented starting 17 August 2027.