This blog post focuses on privacy and banking secrecy in the financial sector of Monaco. The material will be relevant for those who intend to obtain a financial license in Monaco or enter the financial market of the state.
Managers and staff of financial institutions operating in Monaco are obliged to observe the rules of professional secrecy. Violation of these rules may result in criminal liability.
What information is confidential
When obtaining a financial license in Monaco, one should carry out a comprehensive study of what information is confidential with regard to banking activities. Such information primarily relates to customers. It becomes known to the bank in the process of customer service during the provision of banking services.
In their relationships with depositors and borrowers, banks receive extensive information about the financial position, business relations, and most often - the private life of the clients.
All information about the assets, transactions carried out on the accounts, the name in which the accounts are issued and the type of these accounts, the identity of agents, or guarantors is confidential.
Accurate and non-public information collected as part of the confidentiality of professional relationships with clients is covered by professional secrecy. It is the bank’s obligation and duty to properly store and protect such information in the interests of clients.
When information can be disclosed
It should be noted that the disclosure of banking secrecy on the basis of the requirements of the law, cannot be recognized as a crime. As in all countries with an orderly financial system, in Monaco, information requested by supervisors and AML / CFT authorities, or by local legal authorities involved in criminal investigations, must be disclosed.
Another exception to banking secrecy concerns persons with a tax address in France. This exception falls under the tax agreement signed between France and Monaco.
Information disclosure and consequences
If you intend to obtain a banking license in Monaco, you should be aware of the consequences that may follow for violating the confidentiality rules in the financial sector of Monaco. Such a violation may result in criminal liability. Thus, in the case of disclosure by the bank of information constituting a bank secret, the client has the right to demand from the bank compensation for damages and non-pecuniary damage.
Moreover, the Monaco Penal Code clearly states that any person who, by virtue of his official position or profession, is the custodian of a secret entrusted to him and who discloses this secret, except where the law obliges him to do so, shall be punished in the form of imprisonment for up to 1 year and a fine of about 18,000 EUR.
We conducted a brief analysis of the confidentiality laws in the private banking of Monaco, found out what information should be kept secret and what responsibility for the violation may be in the event of disclosure of confidential information.
If you intend to obtain a banking license in Monaco, legal experts of our company are at your service. We will advise on the regulation of banking activities in Monaco and provide legal support at all stages of obtaining the license.