Trusts In Monaco – Recent Changes In Reporting Obligations – Trusts

On 29 February 2024, Law no. 1.559¹ amending in
particular Law no. 214 of 27 February 1936 revising Law no. 207 of
12 July 1935 on trusts, Arrêté Ministériel no.
2024-120² and the Ordonnance Souveraine no.
10.430³ were published.

These provisions impose new obligations that should be borne in
mind when organising your assets.

Obligation on the trustee to obtain, keep and update more
accurate and detailed information:

• This obligation continues for the duration of the provision of
  services or advice and is fixed at 10 years after the date of
  cessation of their involvement as trustee or local representative
  of the trust.




• Information regarding the beneficial owners, settlors,
  trustees, protectors and any other natural person who ultimately
  exercises effective control over the trust:
  

  • Natural persons: surname, name, surname, nickname or pseudonym,
    forenames, date and place of birth, nationality(ies), home
    address

  
  

  • Legal persons: corporate name, legal form, registered office
    address, number and place of registration in a public register




• Information relating to organisations providing
  services or entering into a business relationship with the trust
  (in accordance with the provisions of Law no. 1.362 of 3 August
  2009⁴):
  

  • Natural persons: surname, first name(s), nationality(ies),
    country of residence, business address and, where applicable, the
    number and place of registration in a public register.

  
  

  • Legal persons: the corporate name or business name, and any
    acronyms used, as well as the trade name or sign used, the address
    of the registered office, and the number and place of registration
    in a public register, in the case of a legal entity.

Trustee’s obligation to keep accounts

This obligation is also extended to 10 years from the date of
termination of his involvement as trustee or local representative
of the trust.

Access by third parties to information contained in the
register of Trusts

The list of people who can access it has been extended and the
conditions of access vary according to the person’s status:

• In the event of a request for information, the Trustee is no
  longer informed in advance, but only at the same time as the
  information is provided (Article 7 of Sovereign Order 8.635 of 29
  April 2021).




• When a request is made to restrict access to information
  relating to beneficial owners, the non-application of the
  provisional restriction put in place pending a final decision is
  extended to the bodies and persons referred to in points 1°) to
  4°) and 24°) to 28°) of Article 1 of Act no. 1.362 of 3
  August 2009.

Control of the obligations of trustees to obtain, keep and
update information

Employees of the Economic Development Department may now carry
out an inspection (in accordance with article 12 of Sovereign Order
n° 8.635 of 29 April 2021 and article 13-1-2 of Law n° 214
of 27 February 1936).

During this inspection, professional secrecy may not be invoked
against them with regard to information and documents relating to
the inspected structure.

*

Finally, it is important to emphasise that the criminal
penalties for non-compliance with the above obligations
have also been significantly toughened. In view of all these
legislative changes, it is essential to surround yourself with
qualified professionals to ensure that your practice complies with
current standards.

^Footnotes

<sup>1 Act no. 1.559 of 29
February 2024 adapting legislative provisions to combat money
laundering, the financing of terrorism and the proliferation of
weapons of mass destruction (Part IV)

2 Ministerial Order no.
2024-120 of 29 February 2024 amending Ministerial Order no. 2012182
 of 5 April 2012 implementing Law no. 1.385 of 15 December
2011 on various measures to update the legislation on public
limited companies, civil partnerships, trusts and foundations, as
amended

3 Sovereign Order n°
10.430 of 29 February 2024 amending Sovereign Order n° 8.635 of
29 April 2021 implementing Law n° 214 of 27 February 1936
revising Law n° 207 of 12 July 1935 on trusts, as
amended.

4 Act No. 1.362 of 3 August
2009 on the fight against money laundering, the financing of
terrorism and the proliferation of weapons of mass destruction, and
corruption</sup>

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.