Monaco

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Phase 2 Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Record keeping requirements for non-trading partnerships and trusts are recent and Monaco’s experience in this regard is limited.  Monaco should monitor, on an on-going basis, the availability of accounting records for civil partnerships and trustees covered by the law No 1.385 of 15 December 2011. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   The prior notification procedure does not allow for any exception and therefore apply to any incoming requests sent by Monaco’s partners, to the exception of the ones sent by France.  It is recommended that certain exceptions from prior notification be permitted (e.g. in cases in which the information request is of a very urgent nature or the notification is likely to undermine the chance of success of the investigation conducted by the requesting jurisdiction). 
Phase 2 Rating Factors Recommendations
Partially Compliant.  The procedure for collecting information to answer incoming requests received under treaties signed since 2009, including the prior notification procedure, is recent and Monaco’s experience in applying it is limited.  Besides introducing exceptions consistent with the international standard, Monaco should, in instances where the prior notification procedure can be applied in compliance with the international standard, monitor this procedure to make sure that it does not unduly prevent or delay effective exchange of information. 
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   The network of treaties containing provisions regarding the exchange of information does not currently cover all of those jurisdictions who have indicated that they would like to enter into such a relationship with the Principality.  Monaco should enter into agreements for exchange of information (regardless of their form) with all relevant partners, meaning those partners who are interested in entering into an information exchange arrangement with it, including Italy, Poland and the United Kingdom. 
Phase 2 Rating Factors Recommendations
Largely Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Monaco has put in place a sound organisational process allowing to handle requests received from partners other than France timely. Nevertheless, this system has not been sufficiently tested in practice.  In relation to its new procedure for requests received from partners other than France, it is recommended that Monaco continues monitoring its resources and procedures so that its competent authorities continue to provide comprehensive answers to its partners in a timely fashion. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.