AMENDMENTS TO THE EU-MONACO MONETARY AGREEMENT

The Sovereign Ordinance No. 8.600 of April 1st, 2021 has amended the annexes A and B of the monetary agreement concluded between the Principality of Monaco and the European Union on November 29th, 2011.

Fourteen new European texts have been included to the Annex A of the Monetary Agreement and are therefore applicable, as the case may be, in Monaco to credit institutions, electronic money institutions and payment institutions.

Two new European texts have been included to the Annex B of the Monetary Agreement and Monaco is required to apply equivalent provisions before December 31st, 2023.

This year, several important texts for the Monegasque banking sector have been integrated into Annex A of the Monetary Agreement and in particular the EU directive n°2019/878 of May 20th, 2019 (known as "CRD V") as well as regulation (EU) 2019/876 of May 20th, 2019 (known as "CRR 2").

These two texts thoroughly revise the regulatory requirements in terms of governance and internal control and above all create new obligations for European banks with respect to inter alia variable remuneration, outsourcing, audit cycles, conflicts of interest, ….

These new requirements and obligations are, since the publication of the Sovereign Ordinance No. 8.600 of April 1st, 2021, now also applicable to Monegasque banks.