Regulatory and International Overview 2022

99 AVOCATS ASSOCIÉS is pleased to provide you with a summary of the main regulatory texts (selection excluding Covid-19 measures, purchasing power and energy) and international commitments of the Principality of Monaco for the year 2022, covering the following fields of law:

• Banking & Finance ● Insurance
• Compliance
• Tax
• Real Estate
• Social
• Digital
• Public
• Health
• International cooperation

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BANKING & FINANCE ● INSURANCE

1. Regulation of financial activities

Ordonnance Souveraine n° 9.259 du 12 mai 2022 (JDM n° 8591 of 20 May 2022). Transcription of the conditions of application of the new provisions of Law No. 1.338 of 7 September 2007 on financial activities resulting from the reform carried out by Law No. 1.515 of 23 December 2021 which enabled the CCAF to obtain the status of ordinary member of IOSCO in October 2022 (statement of financial activities, rules on conflicts of interest, missions and functioning of the CCAF, etc.) More information

2. Cessation or abandonment of benchmarks

Arrêté Ministériel n° 2022-120, n° 2022-121, n° 2022-122, n° 2022-123 du 9 mars 2022 (JDM n° 8582 of 8 March 2022). Designation of SARON and ERSTR to replace CHF LIBOR and EONIA respectively (from 1 and 3 January 2022; criteria to be taken into account in determining the suitability of an alternative benchmark (fallback clause); mention of the contingency plan (including fallback clause) in the additional information section of the simplified prospectus of the unit trust or investment fund using a benchmark. More information

3. European Union legislation (Monetary Agreement)

Ordonnance Souveraine n° 9.275 du 25 mai 2022 (Annex JDM n° 8.593 of 3 June 2022). Replaces Annexes A (legislation applicable to the activity and supervision of credit institutions and to the prevention of systemic risks in payment and securities settlement systems) and B (legal provisions to be implemented with regard to the prevention of money laundering, the prevention of fraud and counterfeiting, and banking and financial legislation) to the Monetary Agreement of 29 November 2011 between the European Union and the Principality of Monaco.

4. Usury rates

Ordonnance Souveraine n° 9.025 du 13 janvier 2022 (JDM n° 8574 of 21 January 2022), Ordonnance Souveraine n° 9.336 du 7 juillet 2022 (JDM n° 8.599 of 15 July 2022), Ordonnance Souveraine n° 9.532 du 7 novembre 2022 (JDM n° 8616 of 11 November 2022). Setting average rates for the year 2022 for businesses and individuals (overdrafts, personal loans and property loans), followed by upward revisions of the rate for property loans to individuals in line with general price increases More information

COMPLIANCE

5. Freezing of funds and economic resources

Ordonnance Souveraine n° 9.098 du 11 février 2022 (JDM n° 8578 of 18 February 2022), Ordonnance Souveraine n° 9.171 du 4 avril 2022 (JDM n° 8585 of 8 April 2022), Ordonnance Souveraine n° 9.533 du 7 novembre 2022 (JDM n° 8616 of 11 November 2022). Successive amendments to Sovereign Order 8.664 of 26 May 2021 on procedures for freezing funds and economic resources in application of international economic sanctions (UN, EU, France, other States), in the context of the invasion of Ukraine by Russia. More information

6. Money laundering, terrorist financing and corruption prevention framework (AML/FT-C)

Ordonnance Souveraine n° 9.125 du 25 février 2022 (JDM n°8580 of 4 March 2022), Ordonnance Souveraine n° 9.170 du 4 avril 2022 (JDM n° 8585 of 8 April 2022), Ordonnance Souveraine n° 9.223 du 28 avril 2022 (JDM n° 8589 du 6 mai 2022), Ordonnance Souveraine n° 8.510 du 20 octobre 2022, Arrêté Ministériel n° 2022-553 du 20 octobre 2022 (JDM n° 8614 of 28 October 2022). In the context of the MONEYVAL evaluation of the 5th cycle, amendment of Sovereign Order n° 2.318 of 3 August 2009 implementing Law No. 1. 362 of 3 August 2009 as amended: finalisation of the upgrading with the 5th (EU) Anti-Money Laundering and Terrorist Financing Directive; modalities for the recusal of a CERC member; training and professional certification of persons responsible for the implementation of the anti-Money Laundering and Counter-Terrorist Financing framework designated by credit, payment and electronic money institutions and persons carrying out financial activities; SICCFIN questionnaires to be completed by the reporting entities More information.

7. States and Territories at High Risk of Money Laundering, Terrorist Financing and Corruption (ETHR)

Arrêté Ministériel n° 2022-358 du 6 juillet 2022 (JDM n° 8599 of 15 July 2022), Arrêté Ministériel n° 2022-662 du 2 décembre 2022 (JDM n° 8620 of 9 December 2022). Update of the list of ETHRs with strategic deficiencies in their B/FT-C arrangements, following FATF decisions to place or remove them from the list of jurisdictions under heightened scrutiny (amendment of Ministerial Order No. 2021-703 of 8 November 2021). More information

TAX

8.Automatic exchange of information on financial account

Arrêté Ministériel n° 2022-729 du 21 décembre 2022 (JDM n° 8623 of 30 December 2022). Establishment of the list of reporting, partner and non-reciprocal jurisdictions from 1 January 2023 under the OECD Common Reporting Standard (CRS) for tax purposes. More information

9. Code des taxes et du chiffre d’affaires (VAT)

Ordonnance Souveraine n° 9.160 du 18 mars 2022 (JDM n° 8583 of 25 March 2022). Transcription into the Code des taxes et du chiffre d'affaires (CTCA) of the French tax measures resulting from the Loi n° 2021-1900 du 30 décembre 2021 de finances pour 2022 (LF 2022) (JORF n° 0304 du 31 décembre 2021). More information

REAL ESTATE

10. Co-ownership of built properties

Arrêté Ministériel n° 2022-588 du 8 novembre 2022 (JDM n° 8616 of 11 November 2022). In application of Law No.1.329: fixing the amount of work for which estimates must be attached to the convocation of the assembly; (minimum) lists of documents that the syndic (managing agent) must draw up and keep up to date and that the professional syndic must make available in the secure online space accessible to all the co-owners. More information

LABOUR

11. Minimum wages in hotels, restaurants and pubs

Arrêté Ministériel n° 2022-677 du 2 décembre 2022 (JDM n° 8620 of 9 December 2022). Makes Rider no. 2 of 18 October 2022 to the Collective Agreement of the Hotel Industry of Monaco of 1 July 1968 (Annex to JDM no. 8.614 of 28 October 2022) compulsory for all employers and employees in the hotel, catering and drinks sector, which has introduced differentiated minimum remuneration, according to qualifications and the different methods of remuneration (fixed or percentage).

DIGITAL

12. Reliable digital copy (civil)

Ordonnance Souveraine n° 9.059 du 21 janvier 2022 (JDM n° 8575 of 28 January 2021). Pursuant to Article 1181 of the Civil Code, setting the conditions for the reliability of the digital copy and the destruction of the original. More information

13. Technical service providers (Digital Principality)

Ordonnance Souveraine n° 9.058 du 21 janvier 2022, Arrêtés Ministériels n° 2022-40, n° 2022-41 du 21 janvier 2022 (JDM n° 8575 of 28 January 2022). Pursuant to Law No. 1.383 of 2 August 2011 as amended, setting the rules applicable to hosting companies, access providers, online platform operators, providers of online consumer reviews (data retention, information to users and consumers, etc.) More information

14. .mc" domain names (Digital Principality)

Arrêté Ministériel n° 2022-38 du 21 janvier 2022 (JDM n° 8575 of 28 January 2022). In application of Law No. 1.383 of 2 August 2011 as amended, the Naming Charter, the registration contract and the tariffs for operations on ".mc" domain names are annexed (end of the transitional period for compliance on 28 January 2023). More information

15. Electronic registered mail service (Digital Principality)

Arrêté Ministériel n° 2022-39 du 21 janvier 2022 (JDM n° 8575 of 28 January 2022). Pursuant to Law No. 1.383 of 2 August 2011 as amended, setting the requirements for the electronic registered mail trust service (verification of the identity of the sender and recipient, proof of deposit, etc.). More information

PUBLIC

16. Contracts for works, buildings and public works of the State, orders for renovation works entrusted by the State by mutual agreement

Arrêté Ministériel n° 2022-708 du 12 décembre 2022 (JDM n° 8621 of 16 December 2022). Determining the procedures for awarding building and public works (B.T.P.) contracts for restricted public tenders, as well as orders for renovation work entrusted by mutual agreement by the State (entered into force on 1 January 2023). More information

17. Disciplinary procedure for pharmacists

Ordonnance Souveraine n° 9.282 du 2 juin 2022 (JDM n° 8594 of 10 June 2022). Modalities of application of the new provisions relating to the disciplinary procedure introduced by Law n° 1.518 of 23 December 2021 relating to the practice of pharmacy, including: the introduction of mediation (following the example of conciliation existing in France since decree n° 2012-696 of 7 May 2012); the mention of the appeals that can be exercised before the Supreme Court (appeal in cassation against the decision of the Superior Disciplinary Chamber or appeal for annulment on the grounds of excess of power against the ministerial decree taken on the proposal of this decision).

18. Prevention of and fight against harassment and violence in schools

Ordonnances Souveraines n° 9.296, n° 9.297, n° 9.298 du 10 juin 2022, Arrêté Ministériel n° 2022-327 du 10 juin 2022 (JDM n° 8595 of 17 June 2022). Conditions of application of the new provisions of Law No. 1.334 of 12 July 2007 on education resulting from the reform carried out by Law No. 1.513 of 3 December 2021, concerning the implementation of a comprehensive educational approach to the prevention and reduction of harassment and violence in the school environment (prevention and combating delegate, training of school staff, educational actions with pupils, prevention and combating plan). More information

19. Statutes of the Sovereign Family

Ordonnance Souveraine n° 9.389 du 29 juillet 2022 (JDM n° 8603 of 12 August 2022). Amendment of Sovereign Order n° 5.344 of 2 June 2015 (setting the conditions for the application of Article 10 of the Constitution governing the succession to the Throne) with regard to the rules for the exercise of the Regency in the event of the death, abdication or temporary or definitive impediment of the Prince Regnant when the Hereditary Prince is a minor, and also in the event of the death of the Hereditary Prince, if the closest heir in the order of succession is a minor The Council of Regency (presided over by the spouse of the Prince Regnant who is not separated de jure or de facto, or failing that by the eldest of the four members of the Council of Regency appointed by Sovereign Decision) and no longer the Regent, henceforth benefits from the delegation of the exercise of powers (all necessary measures, including those concerning the custody of the Hereditary Prince and of the minor Prince's Children).

HEALTH

20. Telemedicine

Ordonnance Souveraine n° 9.190 du 8 avril 2022 (JDM n° 8.536 of 15 April 2022). Regulates the conditions for carrying out telemedicine acts including teleconsultation (favoured in the context of the Covid-19 health crisis), tele-expertise, remote medical monitoring and remote medical assistance (patient consent, secrecy and security rules, registration in the medical file, conditions for coverage by the compulsory health insurance scheme, etc).

21. Medical monitoring of employees by teleconsultation

Ordonnance Souveraine n° 9.308 du 17 juin 2022 (JDM n° 8596 of 24 June 2022). Introduces the possibility for the occupational physician (following the example of the town doctor) to carry out the medical examinations necessary for the individual monitoring of the employee's state of health in accordance with Law No. 637 of 11th January 1958 by means of teleconsultation (under the conditions set out in Sovereign Order n° 9.190 of 8 April 2022 presented above), rather than on the premises of the Occupational Medicine Office.

22. Non-conventional practices involved in well-beeing

Arrêtés Ministériels n° 2022-411, n° 2022-412 et n° 2022-413 du 1^er août 2022 (JDM n° 8602 of 5 August 2022), Arrêté Ministériel n° 2022-722 du 14 décembre 2022 (JDM n° 8.622 of 23 December 2022). In application of Law No. 1.516 of 23 December 2021, setting the operating rules and composition of the Advisory Commission, the advertising rules that authorised practitioners must comply with, and the list of practices that may be carried out in Monaco (art therapy, fire-cutting, animal mediation, meditation, modelling, reflexology, reiki, shiatsu, sophrology).

23. Midwifery skills

Arrêtés Ministériels n° 2022-422, n° 2022-423, n° 2022-424, n° 2022-425 du 29 juillet 2022 (JDM n° 8604 of 19 August 2022). Pursuant to Law No. 1.525 of 16 May 2022, fixing the list of vaccinations, medicines, medical devices that midwives may prescribe/practice, and the list of sexually transmitted infections for which they may prescribe screening or treatment.

INTERNATIONAL COOPERATION

24. Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (CETS No. 198)

Ordonnance Souveraine n° 9.393 du 29 juillet 2022 (JDM n° 8604 of 19 August 2022). The Warsaw Convention of 16 May 2005, ratified on 23 April 2019, became enforceable in Monaco. It updates and extends the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime of 8 November 1990 (ETS No. 14, Strasbourg Convention) to take account of the fact that terrorism is no longer financed solely by money laundering ("dirty" money), but also by legitimate activities ("clean" money, collected for example through charitable organisations or legitimate business activities). It intends to respond in the context of international mutual legal assistance in criminal matters to the need for speedy access to financial or asset-related information held by criminal organisations, including terrorist groups. Austria objected to certain reservations and declarations made by Monaco. More information

25. Council of Europe Criminal Law Convention on Corruption (ETS No. 173)

Ordonnance Souveraine n° 9.394 du 29 juillet 2022 (JDM n° 8604 of 19 August 2022). Monaco has partially withdrawn its reservation to Article 17 of the Convention of 27 January 1999 (as from 1 April 2022) concerning the establishment of its jurisdiction when the perpetrator of a criminal offence covered by the Convention is one of its nationals, a public official or a member of its national public assemblies, or when the offence involves one of its public officials or members of its national public assemblies or any of the persons referred to in Articles 9 to 11 of the Convention, who is at the same time a national of Monaco. More information

26. Agreement on the exchange and reciprocal protection of classified information between Monaco and France

Ordonnance Souveraine n° 9.060 du 21 janvier 2022 (Annex JDM n° 8576 of 4 February 2022). The Agreement signed on 20 December 2021 in the form of an exchange of notes verbales amended the Agreement signed in Paris on 13 July 2017 to take account of the reform of French regulations on the protection of national defence secrets which came into force on 1 July 2021, which changed the classification levels (from three levels "Confidential Defence, Secret Defence and Top Secret Defence" to two levels "Secret and Top Secret"), reinforcing the rules of protection per level and guaranteeing protection measures equivalent to international standards. The Agreement is thus completed in order to organise the equivalence of protection to be granted to French or jointly generated classified information and material issued after 1 July 2021. Classified information and material issued before 1 July 2021, which will remain marked with the old classification stamps, will continue to be exchanged in accordance with the equivalence in force before that date.

27. United Nations Convention relating to the Status of Refugees

Ordonnance Souveraine n° 9.346 du 13 juillet 2022 (JDM n° 8600 of 22 July 2022). Enlargement of the scope of Monaco's geographical commitments under the Convention of 28 July 1951 (notified to the UN Secretariat General on 11 February 2022). At the time of its accession, Monaco had given the expression "events occurring before 1 January 1951" in Article 1, Section A of the Convention (definition of the term "refugee") the meaning of "events occurring before 1 January 1951 in Europe" (formula a). Henceforth, these words are understood to mean "events occurring before 1 January 1951 in Europe or elsewhere" (formula b). In this way, the protection granted by Monaco is no longer limited to asylum seekers and refugees who have fled their country as a result of events occurring in the "Europe" region alone, but is universal in nature.

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NOTE: This publication does not constitute legal advice. Any use of the information contained herein is your own responsibility and does not constitute an endorsement by 99 AVOCATS ASSOCIÉS.