Monthly Legal Overview / March 2023

We are pleased to propose a selection of the texts published in the Journal de Monaco in March 2023.

To see our news (life of the firm, publications) in March 2023, click on the following links:

IBA 28th Annual International Private Client Conference

Chambers Europe 2023: ranking and contribution

The new provisions of criminal procedure in force since 1 March 2023

Sovereign Cloud's "twin" in Luxembourg: ratification of the bilateral agreement and extension of Monaco's jurisdiction over technological crime (Bills n°1075 and n°1076)

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SECURITIES & CREDIT

Assignment of professional receivables by bordereau

Law n° 1.529 of 29 July 2022 introduced into Monegasque law the assignment of professional receivables on the model of the French "bordereau Dailly".

Sovereign Order n° 9.819 of 9th March 2023 (JDM n° 8634 of 17th March 2023) sets out:

• the compulsory mentions of the bordereau;
• the form and content of the notification to the debtor of an assigned receivable prohibiting him from paying into the hands of the signatory of the bordereau (as from this notification the debtor is only validly discharged by the credit institution or finance company).

More information

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COMMERCIAL & TAX - INTERNATIONAL

VAT: Transcription into Monegasque law of the provisions of the French Finance Law for 2023

Sovereign Order n° 9.821 of 9 March 2023 (JDM n° 8634 of 17 March 2023) transcribed into the Code des Taxes et du Chiffre d'Affaires (Tax and Turnover Code) the French tax measures resulting from the 2023 Finance Law n° 2022-1726 of 30 December 2022 (JORF n° 0303 of 31 December 2022) in accordance with European Union law:

• Harmonisation of the tax regime for self-supply (LASM) with regard to the application of reduced VAT rates;
• No taxable transaction in case of transfer of a universality of goods and no longer "VAT exemption";
• Introduction of a VAT exemption for the importation of goods for disaster victims;
• Consistency in the application of reduced VAT rates in the food and agricultural production sector;
• The qualified electronic stamp, a new technical solution for electronic invoicing between VAT taxable persons;Conditions for the application of the reduced rate for services relating to electric vehicle charging stations;
  
• Redefinition of the scope of application of the reduced rate for energy renovation services in residential premises completed at least two years ago;
• Exemption from filing the recapitulative and identification statement for beneficiaries of the basic exemption and imports not subject to VAT payment;
• Expansion of the control mechanism that can lead to non-allocation or invalidation of the individual identification number.

More information

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INTERNATIONAL • AML/CFT • COMPLIANCE

Update of the list of States and Territories at high risk of money laundering and terrorist financing (SLRT) pursuant to the FATF decision

Ministerial Order 2023-150 of 14 March 2023 (JDM No. 8634 of 17 March 2023) amended Ministerial Order 2021-703 of 8 November 2021 establishing the list of HTRTs. South Africa and Nigeria have been added.

More information

Amendment to Annex B of the Monetary Agreement between Monaco and the European Union: European Union list of third countries with a high risk of money laundering and terrorist financing

Sovereign Order n° 9.830 of 15 March 2023 (JDM n° 8635 of 24 March 2023) added to Annex B of the Monetary Agreement the Commission Delegated Regulation (EU) 2022/229 of 7 January 2022 amending Delegated Regulation (EU) 2016/1675 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council identifying high risk third countries.

Amendment to the list of high-risk third countries that have made a written high-level political commitment to address identified deficiencies and have developed an action plan with the FATF:

Additions: Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, Philippines, Senegal, South Sudan
Withdrawals: Bahamas, Botswana, Ghana, Iraq, Mauritius

More information

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INTELLECTUAL PROPERTY - ADMINISTRATIVE

Patent maintenance: increase in the rates (annuities) as from 1st April 2023

Sovereign Order n° 9.794 of 1st March 2023 (JDM n° 8633 of 10th March 2023) has increased the rates of the annual fee (annuity) to be paid to maintain one's patent in force, applicable as from 1st April 2023:

• from the 1st to the 4th annuity: unchanged;
• from the 5th to the 8th year: increase of €5;
• from the 9th to the 11th yearly instalment: increase of €10;
• from the 12th to the 14th yearly instalment: increase of €15;
• from the 15th to the 20th yearly instalment: increase of €20.

More information

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HEALTH • PUBLIC

Obligation to wear a mask

The Ministerial Decision of 30 March 2023 (JDM n° 8636 of 31 March 2023), modifies the provisions of article 3 of the Ministerial Decision of 7 October 2022 establishing exceptional measures for the control of the COVID-19 epidemic with a new relaxation of the wearing of masks.

The wearing of masks remains mandatory in conventional hospital wards of health establishments for visitors, consultants and staff. Outside these services, it is up to the Head of Department to impose or lift the obligation to wear a mask.

In addition, the requirement to wear a mask in collective accommodation facilities has been removed.

Masks may still be required to be worn on the premises of doctors, dental surgeons, midwives, psychologists, osteopaths, pharmacists and medical auxiliaries.

In any case, the obligation does not apply to children under the age of five.

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INTERNATIONAL • PUBLIC

Franco-Monegasque Covention on the safety of the Rainier III tunnel

Sovereign Order no. 9.836 of 23rd March 2023 (JDM no. 8636 of 31st March 2023) renders enforceable the Convention between the Government of His Serene Highness the Prince of Monaco and the Government of the French Republic on the safety upgrading of the Rainier III tunnel, signed on 30th November 2022, which will enter into force with regard to Monaco on 1st May 2023.

The purpose of the agreement is to build a safety gallery for the Rainier III road tunnel, parallel to the existing tunnel (with the exception of the first 300 metres and the last 200 metres), with a length of 1,080 metres, and extending part of its route through the subsoil of the French municipalities bordering Monaco (La Turbie and Cap d'Ail), a project of general interest to both States.

The Franco-Monegasque Cooperation Commission, meeting on 18 March 2021, validated the technical file for making the Rainier III tunnel safe as well as the terms of the agreement, which governs:

• the management of all the work to be carried out;
• the acquisition and land formalities;
• the procedure for the expropriation of the French subsoil and its compensation;
• responsibilities for the construction and operation of the safety gallery;
• cooperation on safety matters;
• the handling of appeals by third parties and companies concerning investment, maintenance or operation work carried out on French territory;
• the conditions for maintenance and operation of the gallery;
• the validation of the study file for the construction of the gallery prior to the initiation of the procedure for the declaration of public utility;
• the materialization of the border line inside the gallery;
• the modalities for settling disputes.

Regulations applicable to foreign taxis and vehicles for hire with foreign drivers between 1st April and 31st October 2023

Sovereign Order n° 9.841 of 27th March 2023 and Ministerial Orders n° 2023-178/179/180/181/182/183 (JDM n° 8636 of 31st March 2023) set out the conditions (documents to be provided by the applicant, issue of the authorisation, provision of customers and drop-off) under which foreign taxis and vehicles for hire with foreign drivers may pick up customers in the Principality between 1st April and 31st October 2023.

The maximum number of seasonal vignettes (costing 600 euros each) has been set at 300 for foreign hire car operators and 20 for foreign taxi operators.