Forslag til RÅDETS AFGØRELSE om indgåelsen på Unionens vegne af ændringsprotokollen til aftalen mellem Den Europæiske Union og Fyrstendømmet Monaco om udveksling af oplysninger om finansielle konti med henblik på at forbedre efterretteligheden vedrørende international beskatning i overensstemmelse med standarden for automatisk udveksling af oplysninger om finansielle konti på skatteområdet, som er udarbejdet af Organisationen for Økonomisk Samarbejde og Udvikling (OECD)

EN EN
EUROPEAN
COMMISSION
Brussels, 17.7.2025
COM(2025) 404 final
2025/0219 (NLE)
Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of the Amending Protocol to the Agreement
between the European Union and the Principality of Monaco on the exchange of
financial account information to improve international tax compliance in accordance
with the Standard for Automatic Exchange of Financial Account Information in Tax
Matters developed by the Organisation for Economic Cooperation and Development
(OECD)
Offentligt
KOM (2025) 0404 - Forslag til afgørelse/beslutning
Europaudvalget 2025
EN 1 EN
EXPLANATORY MEMORANDUM
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The present proposal concerns the conclusion of the Amending Protocol to the Agreement
between the European Union and the Principality of Monaco (Monaco) on the exchange of
financial account information to improve international tax compliance in accordance with the
Standard for Automatic Exchange of Financial Account Information in Tax Matters
developed by the Organisation for Economic Cooperation and Development (OECD)1
(the
Agreement).
The Agreement provides the legal basis for the reciprocal automatic exchange of financial
account information between the EU Member States and Monaco, in accordance with the
Common Reporting Standard (CRS) developed by the OECD. The same standard is
implemented within the European Union under Council Directive 2014/107/EU2
(DAC 2 –
the first amendment to Directive 2011/16/EU3
on administrative cooperation in the field of
taxation – DAC)4
.
Important changes to the CRS were approved at international level on 26 August 20225
and
will apply from 1 January 2026. Council Directive (EU) 2023/22266
(DAC8) already
implemented these changes within the European Union and will also apply from 1 January
2026.
The changes extend the scope of the CRS to ensure the coverage of electronic money products
and central bank digital currencies. They also further improve the due diligence procedures
and reporting outcomes, with a view to increasing the usability of CRS information for tax
administrations and limiting burdens on financial institutions, where possible.
To ensure that the automatic exchange of financial account information between EU Member
States and Monaco is aligned with, and continues to take place in accordance with, the
updated CRS from 1 January 2026, it was necessary to negotiate and agree corresponding
amendments to the Agreement.
In May 2018, Regulation (EU) 2016/679 on the protection of natural persons with regard to
the processing of personal data and on the free movement of such data, and repealing
Directive 95/46/EC (General Data Protection Regulation “GDPR”)7
started to apply.
To ensure that the Agreement reflects these updates, it was necessary to remove the references
to the repealed Directive 95/46/EC and replace these references with references to Regulation
(EU) 2016/679. Simultaneously, the references to the national data protection legislation of
Monaco were also updated. Finally, Article 6 of the Agreement as well as the additional data
protection safeguards regarding the treatment of data processed under this agreement (Annex
III) have been slightly adjusted to fully align the wording and ensure continued compliance
with the GDPR.
1
OJ L 332, 19.12.2003, p.42. OJ L225, 19.08.2016, pages 1 to 40; OJ L280, 18.10.2016, pages 1 to 2.
2
OJ L359 of 16.12.2014, p. 1 to 29.
3
OJ L 64 of 11. 2011, p. 1 to 12.
4
OJ L 359, 16.12.2014, p.1-29.
5
https://www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-
matters_896d79d1-en.html, pages 62 to 102.
6
Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on administrative
cooperation in the field of taxation (OJ L, 24.10.2023)
7
OJ L119 of 4 May 2016, p. 1 to 88.
EN 2 EN
A Council decision authorising the opening of negotiations for the amendment of the
Agreement concerning the automatic exchange of financial account information to improve
international tax compliance between the European Union and the Principality of Monaco was
adopted on 21 May 20248
.
Several rounds of negotiations were held, and a provisional agreement was reached in May
2025. Subsequently, the draft text of the Amending Protocol was initialled by the Chief
negotiators on 18 June 2025.
The Council has consistently been informed about the progress in the negotiations in the
Working Party on Tax Questions and in the High Level Working Party. In particular, the text
of the draft Amending Protocol was shared and discussed with the Member States ahead of its
initialling. The initialled text was also shared with the European Parliament.
The Commission considers that the objectives set out by the Council in its negotiating
directive have been attained and that the negotiated text is acceptable to the Union.
The signing, on behalf of the Union, of the Amending Protocol to the Agreement between the
European Union and the Principality of Principality of Monaco on the exchange of financial
account information to improve international tax compliance in accordance with the Standard
for Automatic Exchange of Financial Account Information in Tax Matters developed by the
Organisation for Economic Cooperation and Development (OECD) took place on xxxx.
• Consistency with existing policy provisions in the policy area
The amendment of the Agreement was negotiated in line with the comprehensive negotiating
directive adopted by the Council on 21 May 2024.
The negotiated Amending Protocol ensures that the existing agreement between the European
Union and Monaco remains aligned with Union legislation in the same field, notably the DAC
as amended by DAC8.
DAC8 includes, among other amendments, the latest changes to the OECD CRS. In the light
of the close relationship in this field between the European Union and Monaco, it is important
to strengthen along the same lines the administrative cooperation with their tax authorities in
the field of automatic exchange of financial account information. The timely update of the
Agreement ensures the smooth and effective continuation of this administrative cooperation
beyond 1 January 2026.
The amendments to the Agreement also take account of the Union policies in the field of the
fight against money laundering and terrorist financing, because the Customer Due Diligence
activities to be performed by Financial Institutions, in view of collecting the financial account
information to be exchanged under the Agreement, will be substantially aligned with those
that the same Financial Institutions have to apply as obliged entities under the European
Union legal framework in the fight against money laundering and terrorist financing.
8
Council Decision (EU) 2024/1489 of 21 May 2024 authorising the opening of negotiations for the
amendment of the Agreements concerning the automatic exchange of financial account information to
improve international tax compliance between the European Union and the Swiss Confederation, the
Principality of Liechtenstein, the Principality of Andorra, the Principality of Monaco and the Republic
of San Marino, respectively
EN 3 EN
The Amending Protocol also takes account of the Union policies in the field of respect of
fundamental rights, notably on protection of personal data in the case of the outflow of this
data to non-EU and non-EEA countries.
As far as the parts concerning the CRS are concerned, the Agreement itself includes, in
Article 8, a provision requiring the Contracting Parties to consult each other on each occasion
when an important change is adopted at OECD level to any of the elements of the CRS. The
Article also provides that following these consultations, the Agreement may be amended by
means of a protocol between the Contracting Parties. As important changes to the CRS were
approved within the OECD on 26 August 2022, and in accordance with the Union’s exclusive
competence stemming from the existing Agreement, the Amending Protocol implements all
changes that are necessary to reflect the corresponding changes to the CRS. The
implementation of those changes within the Union has been provided for by means of Council
Directive (EU) 2023/2226.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
Given that the main objective and components of the Agreement are to improve
administrative cooperation in the area of direct taxation, the substantive legal basis is Article
115 of the Treaty on the Functioning of the European Union (TFEU).
Given that Article 115 TFEU is the substantive legal basis, the Council is to adopt the
decision concluding the agreement after consulting the European Parliament. Therefore, the
procedural legal basis of the decision concluding the agreement is Article 218(6), second
subparagraph, point (b), TFEU. As Article 115 TFEU requires unanimity for Union act, the
procedural legal basis for the conclusion of this agreement should include the second
subparagraph of Article 218(8) TFEU.
Therefore, the procedural legal basis for the proposed decision on concluding the agreement is
Article 218(6), second subparagraph, point (b), TFEU and the second subparagraph of Article
218(8) TFEU.
• Union competence
Under the case law of the Court of Justice, the Union has exclusive competence where an
agreement may affect common rules or alter their scope9
. This jurisprudence has been
enshrined in Article 3(2) TFEU.
Article 3(2) TFEU provides that, in addition to the areas of exclusive Union competence listed
in Article 3(1) TFEU, the Union shall “also have exclusive competence for the conclusion of
an international agreement when its conclusion is provided for in a legislative act of the Union
or is necessary to enable the Union to exercise its internal competence, or in so far as its
conclusion may affect common rules or alter their scope”.
• Proportionality
The amending protocol respects the principle of proportionality and does not go beyond what
is necessary to meet the objective of updating the Agreement , namely, to incorporate the
changes to the Common Reporting Standard that shall take effect from 1 January 2026. These
amendments will enable the Member States to continue the automatic exchange of financial
9
Opinion 3/15 of the Court, ECLI:EU:C:2017:114, paragraph 118 and the case law quoted therein
EN 4 EN
account information with Monaco in an uninterrupted manner, and in a manner that aligns
with the new requirements of the CRS, as already incorporated in the DAC8.
• Choice of the instrument
Article 218(6) TFEU provides that the Commission or the High Representative of the Union
for Foreign Affairs and Security Policy shall submit proposals to the Council, which shall
adopt a decision on the conclusion of an international agreement. Given the subject matter of
the envisaged agreement, it is appropriate for the Commission to submit a proposal to that
effect.
3. RESULTS OF IMPACT ASSESSMENTS
• Impact assessment
According to tool 7 of the Better Regulation10
, an impact assessment is not needed, inter alia,
when the Commission has little or no choice in the matter.
This condition is satisfied in the present case as the amendments to the existing Agreements
with respect to the automatic exchange of financial account information fully align with the
changes to the CRS that were agreed at the OECD level and already incorporated into EU law
by means of the DAC8. As regards the updates on data protection, these are aimed at updating
references to the EU and Monaco data protection legislation and the specific data protection
safeguards set out in the Agreement.
• Fundamental rights
The envisaged amending protocol to the Agreement will respect the key values of the
European Union as established in Article 2 of the Treaty on the Functioning of the European
Union and the Charter of Fundamental Rights of the European Union.
4. BUDGETARY IMPLICATIONS
The proposal has no implication for the EU budget.
5. OTHER ELEMENTS
• Detailed explanation of the specific provisions of the proposal
The envisaged amendments cover the following points:
1. Amendments to ensure that the automatic exchange of financial account information
between Member States and Monaco under the existing Agreement is aligned with
and continues to take place in accordance with the updated CRS from 1 January
2026
The foreseen amendments expand the scope of reporting to include new digital financial
products, such as Specified Electronic Money Products and Central Bank Digital Currencies.
Simultaneously and with the aim of improving the reliability and use of the exchanged
information, the amendments introduce more detailed reporting requirements and
strengthened due diligence procedures. These amending reporting and exchange of
10
https://ec.europa.eu/info/sites/default/files/br_toolbox-nov_2021_en_0.pdf
EN 5 EN
information requirements are provided for within Article 2, Article 3 and Annex I. They will
apply from 1 January 2026.
The amendments also contain provisions to ensure an efficient interaction between the CRS
and the separate Crypto-Asset Reporting Framework (CARF) developed by the OECD11
.
These provisions allow to limit instances of duplicative reporting, while maintaining a
maximum amount of operational flexibility of Reporting Financial Institutions that are also
subject to obligations under the CARF. These provisions shall only apply as of the date when
Monaco commences to apply the CARF with all Member States.
2. Update to the legal reference on data protection legislation and applicable data
protection safeguards
All references to Directive 95/46/EC have been replaced with references to the GDPR.
Simultaneously, the legal reference to the national data protection legislation of Monaco has
been updated to Law No. 1.565 of 3 December 2024 relating to the protection of personal data
including the conditions of implementation set out by Sovereign Order.
Finally, Article 6 and the additional data protection safeguards included in Annex III have
been slightly adjusted to align the wording and ensure continued compliance with the GDPR.
• Text of the Amending Protocol, joint declarations and notifications
The text of the Amending Protocol is submitted to the Council together with this proposal.
The text of the joint declarations is submitted together with this proposal.
In accordance with the Treaties, it is for the Commission to proceed, on behalf of the Union,
to make the notification provided for in Article 2(1) of the Amending Protocol, in order to
express the consent of the Union to be bound by that Amending Protocol.
11
https://www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-
matters_896d79d1-en.html, pages 8 to 61.
EN 6 EN
2025/0219 (NLE)
Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of the Amending Protocol to the Agreement
between the European Union and the Principality of Monaco on the exchange of
financial account information to improve international tax compliance in accordance
with the Standard for Automatic Exchange of Financial Account Information in Tax
Matters developed by the Organisation for Economic Cooperation and Development
(OECD)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 115, in conjunction with Article 218(6), second subparagraph, point (b) and the
second subparagraph of Article 218(8) thereof,
Having regard to the proposal from the European Commission,
Having regard to the consent of the European Parliament1
,
Whereas:
(1) The Agreement between the European Union and the Principality of Monaco on the
exchange of financial account information to improve international tax compliance in
accordance with the Standard for Automatic Exchange of Financial Account
Information in Tax Matters developed by the Organisation for Economic Cooperation
and Development (OECD)2
(‘the Agreement’) has enhanced mutual assistance in tax
matters between the Contracting Parties and improved international tax compliance.
(2) Important changes to the Common Reporting Standard (CRS) were approved at
international level on 26 August 20223
and have been introduced in Union legislation
with the amending of Council Directive 2011/16/EU by Council Directive (EU)
2023/22264
.
(3) Therefore, the Agreement needs to be amended to ensure that the automatic exchange
of financial account information between EU Member States and the Principality of
Monaco is aligned with, and continues to take place in accordance with, the updated
CRS from 1 January 2026.
(4) The text of the Amending Protocol to the Agreement between the European Union and
the Principality of Monaco on the exchange of financial account information to
improve international tax compliance in accordance with the Standard for Automatic
Exchange of Financial Account Information in Tax Matters developed by the
Organisation for Economic Cooperation and Development (OECD) (‘the Amending
1
OJ C , , p. .
2
OJ L 332, 19.12.2003, p.42. OJ L225, 19.08.2016, pages 1 to 40; OJ L280, 18.10.2016, pages 1 to 2.
3
https://www.oecd.org/en/publications/international-standards-for-automatic-exchange-of-information-in-tax-
matters_896d79d1-en.html, pages 62 to 102.
4
Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on administrative
cooperation in the field of taxation (OJ L, 24.10.2023 http://data.europa.eu/eli/dir/2023/2226/oj
EN 7 EN
Protocol to the Agreement’), which is the result of the negotiations, duly reflects the
negotiating directive issued by the Council.
(5) In accordance with Council Decision (EU) XXXX5
, the Amending Protocol was
signed on XXXX, subject to its conclusion at a later date.
(6) The Amending Protocol to the Agreement, which is the subject of this decision should
be approved.
(7) The joint declarations attached to this Decisions should be approved.
(8) The European Data Protection Supervisor was consulted in accordance with Article
42(1) of Regulation (EC) No 2018/1725 of the European Parliament and of the
Council,
HAS ADOPTED THIS DECISION:
Article 1
The Amending Protocol to the Agreement between the European Union and the Principality
of Monaco on the exchange of financial account information to improve international tax
compliance in accordance with the Standard for Automatic Exchange of Financial Account
Information in Tax Matters developed by the Organisation for Economic Cooperation and
Development (OECD) is hereby approved6
.
Article 2
The Joint Declaration of the Contracting Parties on the Agreement and the Annexes, the Joint
Declaration of the Contracting Parties on Article 5 of the Agreement and the Joint Declaration
of the Contracting Parties on the entry into force and implementation of the Amending
Protocol are hereby approved.
Article 3
This Decision shall enter into force on the day following that of its publication in the Official
Journal of the European Union.
Done at Brussels,
For the Council
The President
5
5 Council Decision (EU) xxxx on the signing, on behalf of the Union, of the Amending Protocol
to the Agreement between the European Union and the Principality of Monaco on the exchange of
financial account information to improve international tax compliance in accordance with the Standard
for Automatic Exchange of Financial Account Information in Tax Matters developed by the
Organisation for Economic Cooperation and Development (OECD) (OJ L XXXX).
6
The text of the Amending Protocol to the Agreement is published in OJ L, […].


EN EN
EUROPEAN
COMMISSION
Brussels, 17.7.2025
COM(2025) 404 final
ANNEX
ANNEX
to the Proposal for a
COUNCIL DECISION
on the conclusion, on behalf of the Union, of the Amending Protocol to the Agreement
between the European Union and the Principality of Monaco on the exchange of
financial account information to improve international tax compliance in accordance
with the Standard for Automatic Exchange of Financial Account Information in Tax
Matters developed by the Organisation for Economic Cooperation and Development
(OECD)
Offentligt
KOM (2025) 0404 - Forslag til afgørelse/beslutning
Europaudvalget 2025
AMENDING PROTOCOL to the Agreement between the European Union and the Principality
of Monaco on the exchange of financial account information to improve international tax
compliance in accordance with the Standard for Automatic Exchange of Financial Account
Information in Tax Matters developed by the Organisation for Economic Cooperation and
Development (OECD)
THE EUROPEAN UNION
and
THE PRINCIPALITY OF MONACO,
both hereinafter referred to, individually, as ‘Contracting Party’ and, jointly, as ‘Contracting
Parties’,
WHEREAS the Contracting Parties have a longstanding and close relationship with respect to
mutual assistance in tax matters, which consisted, initially, in the application of measures
equivalent to those laid down in Council Directive 2003/48/EC1
and which was later developed
into the Agreement between the European Union and the Principality of Monaco on the
exchange of financial account information to improve international tax compliance in
accordance with the Standard for Automatic Exchange of Financial Account Information in
Tax Matters developed by the Organisation for Economic Cooperation and Development
(OECD)2
(‘the Agreement’), as amended by the Amending Protocol to the Agreement between
the European Community and the Principality of Monaco providing for measures equivalent
to those laid down in Council Directive 2003/48/EC,3
based upon the reciprocal automatic
exchange of information by means of implementing the OECD Standard for Automatic
Exchange of Financial Account Information in Tax Matters (‘the Global Standard’),
WHEREAS, following the OECD’s first comprehensive review of the Global Standard,
amendments to the Global Standard were approved by the OECD’s Committee on Fiscal
Affairs in August 2022 and were adopted by the OECD Council on 8 June 2023 by means of
its revised Recommendation on the International Standards for Automatic Exchange of
Information in Tax Matters (‘the update to the Global Standard’),
WHEREAS the OECD comprehensive review identified the increasing complexity of financial
instruments and the emergence and use of new types of digital assets and acknowledged the
necessity of adapting the Global Standard to ensure comprehensive and effective tax
compliance,
WHEREAS, the update to the Global Standard expanded the scope of reporting to include new
digital financial products, such as Specified Electronic Money Products and Central Bank
Digital Currencies, which offer credible alternatives to traditional Financial Accounts, which
are already subject to reporting under the Global Standard,
WHEREAS the new OECD Crypto-Asset Reporting Framework (’CARF’), which was
introduced in parallel to the update to the Global Standard, serves as a complementary
mechanism at the global level and is specifically designed to address the rapid development
and growth of the Crypto-Asset market,
1
Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments (OJ
EU L 157, 26.6.2003, p. 38).
2
OJ EU L 19, 21.1.2005, p. 55.
3
OJ EU L 225, 19.8.2016, p. 3.
WHEREAS it was considered imperative to ensure an efficient interaction between those two
frameworks, in particular to limit instances of duplicative reporting by (i) excluding Specified
Electronic Money Products and Central Bank Digital Currencies from the scope of the CARF,
given their coverage under the updated Global Standard; (ii) considering Crypto-Assets within
the scope of the updated Global Standard to be Financial Assets for the purpose of reporting
Custodial Accounts, Equity or Debt Interests in Investment Entities (except in cases of
provision of services effectuating exchange transactions for or on behalf of customers, which
are covered under the CARF), indirect investments in Crypto-Assets through other traditional
financial products or traditional financial products issued in crypto form; and (iii) providing
for an optional provision for Reporting Financial Institutions to switch-off gross proceeds
reporting for assets that are classified as Crypto-Assets under both frameworks, when such
information is reported under the CARF, while continuing to report under the Global Standard
all other information, such as account balance,
WHEREAS the CARF has been implemented within the European Union by way of Council
Directive (EU) 2023/22264
, which amended Council Directive 2011/16/EU5
, with those
provisions applying from 1 January 2026,
WHEREAS the Principality of Monaco has not been identified as a jurisdiction of relevance
for the implementation of the CARF by the OECD Global Forum on Transparency and
Exchange of Information for Tax Purposes (‘the Global Forum’) at this stage, but remains ready
to take all steps necessary to implement and apply the CARF in an expedited manner when the
Global Forum deems it to be such a jurisdiction,
WHEREAS, with a view to limiting instances of duplicative reporting, where the Principality
of Monaco implements the CARF with regard to Member States, the Contracting Parties should
distinguish the scope of application of the Agreement, the CARF (for the Principality of
Monaco) and Directive (EU) 2023/2226 (for EU Member States) in a manner consistent with
the distinction of the scope of application between the updated Global Standard and the CARF,
WHEREAS, with the aim of improving the reliability and use of the exchanged information,
the update to the Global Standard introduces more detailed reporting requirements and
strengthened due diligence procedures,
WHEREAS the update to the Global Standard adds a new ‘Excluded Account’ category for
Capital Contribution Accounts and a de minimis threshold for reporting of Depository
Accounts holding Specified Electronic Money Products,
WHEREAS, for Member States, Regulation (EU) 2016/679 of the European Parliament and of
the Council6
lays down specific data protection rules in the European Union which also apply
to the exchanges of information effected by the Member States that are covered by the
Agreement,
WHEREAS the protection of personal data in the Principality of Monaco is governed by Law
No. 1.565 of 3 December 2024 relating to the protection of personal data including the
conditions of implementation set out by Sovereign Order7
,
4
Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on administrative
cooperation in the field of taxation (OJ EU L 24.10.2023).
5
Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and
repealing Directive 77/799/EEC (OJ EU L 64, 11.3.2011, p. 1).
6 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016
on the protection of natural persons with regard to the processing of personal data and on
the free movement of such data, and repealing Directive 95/46/EC (General Data Protection
Regulation) (OJ EU L 119, 04.05.2016, p. 1)
7 ‘Journal de Monaco’, the official bulletin of the Principality, n°8725 of 13 December 2024
WHEREAS, on the date of signing of this Amending Protocol, the European Commission has,
so far, not adopted a decision pursuant to Article 45(3) of Regulation (EU) 2016/679 finding
that the Principality of Monaco ensures an adequate level of protection of personal data,
WHEREAS both Contracting Parties commit to implementing and observing the specific data
protection safeguards set out in the Agreement, including Annex III thereto, in such a way as
to ensure that neither Contracting Party may use any justification to refuse to exchange
information with the other Contracting Party,
WHEREAS Reporting Financial Institutions, sending Competent Authorities and receiving
Competent Authorities, as data controllers, should retain information processed in accordance
with the Agreement for no longer than necessary to achieve the objectives thereof and whereas,
given the differences in Member States' and the Principality of Monaco's legislation, the
maximum retention period for each of the Contracting Parties should be set by reference to the
statute of limitations provided by each data controller's domestic tax legislation,
WHEREAS the processing of information under the Agreement is necessary for and
proportionate to the purpose of enabling Member States' and the Principality of Monaco's tax
administrations to correctly and unequivocally identify the taxpayers concerned, to administer
and enforce their tax laws in cross-border situations, to assess the likelihood of tax evasion
being perpetrated and to avoid unnecessary further investigations,
HAVE AGREED AS FOLLOWS:
Article 1
The Agreement is amended as follows:
(1) the introductory wording between the title and Article 1 is replaced by the following:
‘THE EUROPEAN UNION,
and
THE PRINCIPALITY OF MONACO,
both hereinafter referred to, individually, as “Contracting Party” and, jointly, as
“Contracting Parties”,
HAVE AGREED TO CONCLUDE THE FOLLOWING AGREEMENT:’
(2) in Article 1(1), the following subparagraph is added:
‘(m) the term “Crypto-Asset Reporting Framework” means the international
framework for the automatic exchange of information with respect to Crypto-
Assets (which includes the Commentaries) developed by the OECD with G20
countries and approved by the OECD on 26 August 2022,’;
(3) Article 2 is amended as follows:
(a) paragraph 2 is amended as follows:
(i) subparagraphs (a) and (b) are replaced by the following:
‘(a) the following:
(i) the name, address, TIN(s) and date and place of birth (in the
case of an individual) of each Reportable Person that is an
Account Holder of the account and whether the Account
Holder has provided a valid self-certification;
(ii) in the case of any Entity that is an Account Holder and that,
after application of due diligence procedures consistent with
Annexes I and II, is identified as having one or more
Controlling Persons that is a Reportable Person, the name,
address, and TIN(s) of the Entity and the name, address,
TIN(s) and date and place of birth of each Reportable Person,
as well as the role(s) by virtue of which each Reportable
Person is a Controlling Person of the Entity and whether a
valid self-certification has been provided for each Reportable
Person; and
(iii) whether the account is a joint account, including the number
of joint Account Holders;
(b) the account number (or functional equivalent in the absence of an
account number), the type of account and whether the account is a
Preexisting Account or a New Account;’;
(ii) the term ‘and’ at the end of subparagraph (f) is deleted;
(iii) the following subparagraph is inserted after subparagraph (f):
‘(fa) in the case of any Equity Interest held in an Investment Entity that
is a legal arrangement, the role(s) by virtue of which the Reportable
Person is an Equity Interest holder; and’;
(b) the following paragraph is added:
‘3. Notwithstanding paragraph 2, subparagraph (e), point (ii), and unless the
Reporting Financial Institution has elected otherwise under Section I(F)
of Annex I with respect to any clearly identified group of accounts, the
gross proceeds from the sale or redemption of a Financial Asset are not
required to be exchanged to the extent such gross proceeds from the sale
or redemption of such Financial Asset are exchanged by the Competent
Authority of Monaco with the Competent Authority of a Member State or
by the Competent Authority of a Member State with the Competent
Authority of Monaco under the Crypto-Asset Reporting Framework.’;
(4) Article 3 is amended as follows:
(a) in paragraph 3, the following subparagraphs are added:
‘Notwithstanding the first subparagraph, for accounts that are treated as a
Reportable Account solely by virtue of the amendments to this Agreement made
by theAmending Protocol of [date of signing], and, with regard to all Reportable
Accounts, for the additional information to be exchanged pursuant to the
changes made to Article 2(2) under that latter Amending Protocol, information
is to be exchanged with respect to the first year as from the entry into force of
that Amending Protocol and all subsequent years.
Notwithstanding the first and second subparagraphs, with respect to each
Reportable Account that is maintained by a Reporting Financial Institution as of
31 December preceding the entry into force of the Amending Protocol of [date
of signing] and for reporting periods ending by the second calendar year
following such date, information with respect to the role(s) by virtue of which
each Reportable Person is a Controlling Person or Equity Interest holder of the
Entity is to be exchanged where reported by the Reporting Financial Institution
in accordance with Section I, subparagraphs A(1)(b) and A(6a), of Annex I.’;
(b) paragraph 4 is replaced by the following:
‘4. The Competent Authorities will automatically exchange the information
referred to in Article 2 in a common reporting standard schema in
Extensible Markup Language using the Common Transmission System
approved by the OECD or any other appropriate system for data
transmission that may be agreed in the future.’;
(c) paragraph 5 is deleted.;
(5) Article 6 is amended as follows:
(a) paragraph 1 is replaced by the following:
‘1. In addition to the confidentiality rules and other safeguards provided for
in this Agreement, including Annex III, the processing of personal data
pursuant to this Agreement shall be subject, (i) in the case of Member
States, to Regulation (EU) 2016/679 of the European Parliament and of
the Council*, and (ii) in the case of Monaco, to Law No. 1.565 of 3
December 2024 relating to the protection of personal data including the
conditions of implementation set out by Sovereign Order**.
For the purpose of the correct application ofArticle 5, Member States shall
restrict the scope of the obligations and rights provided for in Article 13,
Article 14(1) to (4) and Article 15 of Regulation (EU) 2016/679 to the
extent required in order to safeguard the interests referred to in Article
23(1)(e) of that Regulation. Monaco shall take equivalent measures under
its domestic law.
Notwithstanding the preceding subparagraph, each Member State and
Monaco shall ensure that each Reporting Financial Institution under their
jurisdiction informs each individual Reportable Person concerned
(whether a Monaco Person or a Member State Person) that the information
referred to in Article 2 relating to them will be collected and transferred in
accordance with this Agreement and shall ensure that the Reporting
Financial Institution gives that individual all information that he is entitled
to under its domestic data protection legislation, and at least the following:
(a) the purpose for which his personal data are processed;
(b) the legal basis for the processing operation;
(c) the recipients of his personal data;
(d) the identity of the data controllers;
(e) the time-limits for storing the data;
(f) the existence of the right of a person to ask the controller for access
to, and rectification and erasure of, their personal data;
(g) the right to seek administrative and/or judicial redress;
(h) the procedure for exercising the right to administrative and/or
judicial redress;
(i) the right to apply to the competent data protection supervisory
authority or authorities and their contact details.
This information shall be provided in sufficient time for the individual to
exercise his data protection rights and, in any case, before the Reporting
Financial Institution concerned reports the information referred to in
Article 2 to the competent authority of its jurisdiction of residence (being
a Member State or Monaco).
Member States and Monaco shall ensure that each individual Reportable
Person (whether a Monaco Person or a Member State Person) is notified
of a breach of security with regard to his personal data when that breach
is likely to adversely affect the protection of his personal data or privacy.
__________
*
Regulation (EU) 2016/679 of the European Parliament and of the
Council of 27 April 2016 on the protection of natural persons with
regard to the processing of personal data and on the free movement
of such data, and repealing Directive 95/46/EC (General Data
Protection Regulation) (OJ EU L 119, 04.05.2016, p. 1).
**
‘Journal de Monaco’, the official bulletin of the Principality,
n°8725 of 13 December 2024’;
(b) paragraph 2 is replaced by the following:
‘2. Personal data processed in accordance with this Agreement shall be
retained for no longer than necessary to achieve the purposes of this
Agreement and, in any case, in accordance with each data controller's
domestic rules on statute of limitations.
Reporting Financial Institutions and the competent authorities of each
Member State and Monaco shall be considered to be data controllers, each
with respect to the personal data it processes under this Agreement. Data
controllers shall be responsible for enforcing personal data protection
safeguards, in accordance with the provisions on such safeguards in this
Agreement and for the respect of the rights of the data subjects.’;
(c) paragraph 5 is replaced by the following:
‘5. Notwithstanding the preceding paragraphs, information received by a
jurisdiction (being a Member State or Monaco) may be used for other
purposes where such information may be used for such other purposes
under the laws, including those on the protection of personal data, of the
supplying jurisdiction (being, respectively, Monaco or a Member State)
and where the Competent Authority of that jurisdiction authorises such
use. Information provided by a jurisdiction (being a Member State or
Monaco) to another jurisdiction (being, respectively, Monaco or a
Member State) may be transmitted by the latter to a third jurisdiction
(being another Member State), subject to the application of the safeguards
provided for under this Article and in Annex III and subject to prior
authorisation by the Competent Authority of the first-mentioned
jurisdiction from which the information originated, which authority must
have received the necessary data for assessment of the application of the
safeguards in question.
Information provided by one Member State to another Member State
under its applicable law implementing Council Directive 2011/16/EU on
administrative cooperation in the field of taxation may be transmitted to
Monaco, subject to prior authorisation by the Competent Authority of the
Member State from which the information originated.’;
(6) in Article 7, paragraph 2 is replaced by the following:
‘2. If the consultations concern significant non-compliance with this Agreement,
and the procedure set out in paragraph 1 does not provide for an adequate
settlement, the Competent Authority of a Member State or Monaco may suspend
the exchange of information under this Agreement with, respectively, Monaco
or a specific Member State, by giving notice in writing to the other Competent
Authority concerned. Such suspension will have immediate effect. For the
purposes of this paragraph, significant non-compliance includes, but is not
limited to: (i) non-compliance with the confidentiality and data safeguard
provisions of this Agreement, including Annex III, of Regulation (EU) 2016/679
and of Law No. 1.565 of 3 December 2024 relating to the protection of personal
data including the conditions of implementation set out by Sovereign Order,
depending on the context, (ii) a failure by the Competent Authority of a Member
State or Monaco to provide timely or adequate information as required under
this Agreement, and (iii) the designation of Entities or accounts as Non-
Reporting Financial Institutions and Excluded Accounts in a manner that
frustrates the purposes of this Agreement.’;
(7) Article 9 is replaced by the following:
‘Article 9
Termination
Either Contracting Party may terminate this Agreement by giving notice of
termination in writing to the other Contracting Party. Such termination will become
effective on the first day of the month following a period of 12 months from the date
of the notice of termination. In the event of termination, all information previously
received under this Agreement will remain confidential and subject (i) in the case of
Member States, to the provisions of Regulation (EU) 2016/679and (ii) in the case of
Monaco, to the provisions of Law Law No. 1.565 of 3 December 2024 relating to the
protection of personal data including the conditions of implementation set out by
Sovereign Order, and in both cases to the specific data protection safeguards provided
for in this Agreement, including those in Annex III.’;
(8) Annex I is amended as follows:
(a) in Section I, paragraph A is amended as follows:
(i) the introductory wording and subparagraphs 1 and 2 are replaced by the
following:
‘Subject to paragraphs C to F, each Reporting Financial Institution must
report to the Competent Authority of its jurisdiction (being a Member
State or Monaco) with respect to each Reportable Account of such
Reporting Financial Institution:
1. the following information:
(a) the name, address, jurisdiction(s) of residence (being a
Member State or Monaco), TIN(s) and date and place of birth
(in the case of an individual) of each Reportable Person that is
an Account Holder of the account and whether the Account
Holder has provided a valid self-certification;
(b) in the case of any Entity that is an Account Holder and that,
after application of the due diligence procedures consistent
with Sections V, VI and VII, is identified as having one or
more Controlling Persons that are Reportable Persons, the
name, address, jurisdiction(s) of residence and TIN(s) of the
Entity and the name, address, jurisdiction(s) of residence
(being a Member State or Monaco), TIN(s) and date and place
of birth of each Reportable Person, as well as the role(s) by
virtue of which each Reportable Person is a Controlling
Person of the Entity and whether a valid self-certification has
been provided for each Reportable Person; and
(c) whether the account is a joint account, including the number
of joint Account Holders;
2. the account number (or functional equivalent in the absence of an
account number), the type of account and whether the account is a
Preexisting Account or a New Account;’;
(ii) the term ‘and’ at the end of subparagraph 6 is deleted.;
(iii) the following subparagraph is inserted after subparagraph 6:
‘6a. in the case of any Equity Interest held in an Investment Entity that
is a legal arrangement, the role(s) by virtue of which the Reportable
Person is an Equity Interest holder; and’;
(b) in Section I, paragraph C of is replaced by the following:
‘C. Notwithstanding subparagraph A(1), with respect to each Reportable
Account that is a Preexisting Account, the TIN(s) or date of birth is not
required to be reported if such TIN(s) or date of birth are not in the records
of the Reporting Financial Institution and is not otherwise required to be
collected by such Reporting Financial Institution under domestic law or
any European Union legal instrument (if applicable). However, a
Reporting Financial Institution is required to use reasonable efforts to
obtain the TIN(s) and date of birth with respect to Preexisting Accounts
by the end of the second calendar year following the year in which
Preexisting Accounts were identified as Reportable Accounts and
whenever it is required to update the information relating to the
Preexisting Account pursuant to domestic AML/KYC Procedures.’;
(c) in Section I, the following paragraph is added:
‘F. Notwithstanding subparagraph A(5)(b), and unless the Reporting
Financial Institution elects otherwise with respect to any clearly identified
group of accounts, the gross proceeds from the sale or redemption of a
Financial Asset are not required to be reported to the extent such gross
proceeds from the sale or redemption of such Financial Asset are reported
by the Reporting Financial Institution under the Crypto-Asset Reporting
Framework.’;
(d) in Section VI, subparagraph A(2)(b) is replaced by the following:
‘(b) Determining the Controlling Persons of an Account Holder. For the
purposes of determining the Controlling Persons of an Account Holder, a
Reporting Financial Institution may rely on information collected and
maintained pursuant to AML/KYC Procedures, provided that such
procedures are consistent with the 2012 FATF Recommendations. If the
Reporting Financial Institution is not legally required to apply AML/KYC
Procedures that are consistent with the 2012 FATF Recommendations, it
must apply substantially similar procedures for the purpose of determining
the Controlling Persons.’;
(e) in Section VII, the following paragraph is inserted after paragraph A:
‘Aa. Temporary lack of self-certification. In exceptional circumstances where
a self-certification cannot be obtained by a Reporting Financial Institution
in respect of a New Account in time to meet its due diligence and reporting
obligations with respect to the reporting period during which the account
was opened, the Reporting Financial Institution must apply the due
diligence procedures for Preexisting Accounts, until such self-certification
is obtained and validated.’;
(f) in Section VIII, subparagraphs A(5) to (7) are replaced by the following:
‘5. The term ”Depository Institution” means any Entity that:
(a) accepts deposits in the ordinary course of a banking or similar
business; or
(b) holds Specified Electronic Money Products or Central Bank Digital
Currencies for the benefit of customers.
6. The term “Investment Entity” means any Entity:
(a) which primarily conducts as a business one or more of the following
activities or operations for or on behalf of a customer:
(i) trading in money market instruments (cheques, bills,
certificates of deposit, derivatives, etc.); foreign exchange;
exchange, interest rate and index instruments; transferable
securities; or commodity futures trading;
(ii) individual and collective portfolio management; or
(iii) otherwise investing, administering, or managing Financial
Assets, money, or Relevant
Crypto-Assets on behalf of other persons; or
(b) the gross income of which is primarily attributable to investing,
reinvesting, or trading in Financial Assets or Relevant Crypto-
Assets, if the Entity is managed by another Entity that is a
Depository Institution, a Custodial Institution, a Specified Insurance
Company, or an Investment Entity described in subparagraph
A(6)(a)
An Entity is treated as primarily conducting as a business one or more of
the activities described in subparagraph A(6)(a), or an Entity's gross
income is primarily attributable to investing, reinvesting, or trading in
Financial Assets or Relevant Crypto-Assets for the purposes of
subparagraph A(6)(b), if the Entity's gross income attributable to the
relevant activities equals or exceeds 50 % of the Entity's gross income
during the shorter of: (i) the three-year period ending on 31 December of
the year preceding the year in which the determination is made; or (ii) the
period during which the Entity has been in existence. For the purposes of
subparagraphA(6)(a)(iii), the term “otherwise investing, administering, or
managing Financial Assets, money, or Relevant Crypto-Assets on behalf
of other persons” does not include the provision of services effectuating
Exchange Transactions for or on behalf of customers. The term
“Investment Entity” does not include an Entity that is an Active NFE
because that Entity meets any of the criteria in subparagraphs D(9)(d) to
(g).
This paragraph shall be interpreted in a manner consistent with similar
language set forth in the definition of “financial institution” in the
Financial Action Task Force Recommendations.
7. The term “Financial Asset” includes a security (for example, a share of
stock in a corporation; partnership or beneficial ownership interest in a
widely held or publicly traded partnership or trust; note, bond, debenture,
or other evidence of indebtedness), partnership interest, commodity, swap
(for example, interest rate swaps, currency swaps, basis swaps, interest
rate caps, interest rate floors, commodity swaps, equity swaps, equity
index swaps, and similar agreements), Insurance Contract or Annuity
Contract, or any interest (including a futures or forward contract or option)
in a security, Relevant Crypto-Asset, partnership interest, commodity,
swap, Insurance Contract, or Annuity Contract. The term “Financial
Asset” does not include a non-debt, direct interest in real property.’;
(g) in Section VIII, the following subparagraphs are added after subparagraph
A(8):
‘9. The term “Specified Electronic Money Product” means any product that
is:
(a) a digital representation of a single Fiat Currency;
(b) issued on receipt of funds for the purpose of making payment
transactions;
(c) represented by a claim on the issuer denominated in the same Fiat
Currency;
(d) accepted in payment by a natural or legal person other than the
issuer; and
(e) by virtue of regulatory requirements to which the issuer is subject,
redeemable at any time and at par value for the same Fiat Currency
upon request of the holder of the product.
The term “Specified Electronic Money Product” does not include a
product created for the sole purpose of facilitating the transfer of funds
from a customer to another person pursuant to instructions of the
customer. A product is not created for the sole purpose of facilitating the
transfer of funds if, in the ordinary course of business of the transferring
Entity, either the funds connected with such product are held longer than
60 days after receipt of instructions to facilitate the transfer, or, if no
instructions are received, the funds connected with such product are held
longer than 60 days after receipt of the funds.
10. The term “Central Bank Digital Currency” means any digital Fiat
Currency issued by a Central Bank, or other monetary authority.
11. The term “Fiat Currency” means the official currency of a jurisdiction,
issued by a jurisdiction or by a jurisdiction’s designated Central Bank or
monetary authority, as represented by physical banknotes or coins or by
money in different digital forms, including bank reserves and Central
Bank Digital Currencies. The term also includes commercial bank money
and electronic money products (including Specified Electronic Money
Products).
12. The term “Crypto-Asset” means a digital representation of value that
relies on a cryptographically secured distributed ledger or a similar
technology to validate and secure transactions.
13. The term “Relevant Crypto-Asset” means any Crypto-Asset that is not a
Central Bank Digital Currency, a Specified Electronic Money Product or
any Crypto-Asset for which the Reporting Crypto-Asset Service Provider
has adequately determined that it cannot be used for payment or
investment purposes.
14. The term “Exchange Transaction” means any:
(a) exchange between Relevant Crypto-Assets and Fiat Currencies; and
(b) exchange between one or more forms of Relevant Crypto-Assets’;
(h) in Section VIII, subparagraph B(1)(a) is replaced by the following:
‘(a) a Governmental Entity, International Organisation or Central Bank, other
than:
(i) with respect to a payment that is derived from an obligation held in
connection with a commercial financial activity of a type engaged
in by a Specified Insurance Company, Custodial Institution, or
Depository Institution; or
(ii) with respect to the activity of maintaining Central Bank Digital
Currencies for Account Holders which are not Financial Institutions,
Governmental Entities, International Organisations or Central
Banks.’;
(i) in Section VIII, subparagraph C(2) is replaced by the following:
‘2. The term ”Depository Account” includes any commercial, checking,
savings, time, or thrift account, or an account that is evidenced by a
certificate of deposit, thrift certificate, investment certificate, certificate of
indebtedness, or other similar instrument maintained by a Depository
Institution. A Depository Account also includes:
(a) an amount held by an insurance company pursuant to a guaranteed
investment contract or similar agreement to pay or credit interest
thereon;
(b) an account or notional account that represents all Specified
Electronic Money Products held for the benefit of a customer; and
(c) an account that holds one or more Central Bank Digital Currencies
for the benefit of a customer.’;
(j) in Section VIII, subparagraph C(9)(a) is replaced by the following:
‘(a) a Financial Account maintained by a Reporting Financial Institution as
of 31 December 2016 or, if the account is treated as a Financial Account
solely by virtue of the amendments to this Agreement made by the
Amending Protocol of [date of signing] as of 31 December preceding the
entry into force of the latter Amending Protocol;’;
(k) in Section VIII, subparagraph C(10) is replaced by the following:
‘10. The term “New Account” means a Financial Account maintained by a
Reporting Financial Institution opened on or after 1 January 2017, or, if
the account is treated as a Financial Account solely by virtue of the
amendments to this Agreement made by the Amending Protocol of [date
of signing], on or after the entry into force of the latterAmending Protocol,
unless it is treated as a Preexisting Account under the extended definition
of Preexisting Account in subparagraph C(9).’;
(l) in Section VIII, the following subparagraph is added after subparagraph
C(17)(e)(iv):
‘(v) a foundation or capital increase of a company provided that the account
satisfies the following requirements:
– the account is used exclusively to deposit capital that is to be used
for the purpose of the foundation or capital increase of a company,
as prescribed by law;
– any amounts held in the account are blocked until the Reporting
Financial Institution obtains an independent confirmation regarding
the foundation or capital increase;
– the account is closed or transformed into an account in the name of
the company after the foundation or capital increase;
– any repayments resulting from a failed foundation or capital
increase, net of service provider and similar fees, are made solely to
the persons who contributed the amounts; and
– the account has not been established more than 12 months ago.’;
(m) in Section VIII, the following subparagraph is inserted after subparagraph
C(17)(e):
‘(ea) A Depository Account that represents all Specified Electronic Money
Products held for the benefit of a customer, if the rolling average 90 day
end-of-day aggregate account balance or value during any period of 90
consecutive days did not exceed USD 10 000 or an equivalent amount
denominated in the domestic currency of each Member State or Monaco
at any day during the calendar year or other appropriate reporting period.’;
(n) in Section VIII, subparagraph D(2) is replaced by the following:
‘2. The term “Reportable Person” means a Reportable Jurisdiction Person
other than: (i) an Entity the stock of which is regularly traded on one or
more established securities markets; (ii) any Entity that is a Related Entity
of an Entity described in clause (i); (iii) a Governmental Entity; (iv) an
International Organisation; (v) a Central Bank; or (vi) a Financial
Institution.’;
(o) in Section VIII, subparagraph D(5)(c) is replaced by the following:
‘(c) any other jurisdiction: (i) with which the relevant Member State or
Monaco, as the context requires, has an agreement in place pursuant to
which that other jurisdiction will provide the information specified in
Section I; and (ii) which is identified in a list published by that Member
State or by Monaco.’;
(p) in Section VIII, the following subparagraph is added after subparagraph E(6):
‘7. The term “Government Verification Service” is an electronic process
made available by a Reportable Jurisdiction to a Reporting Financial
Institution for the purposes of ascertaining the identity and tax residence
of an Account Holder or Controlling Person.’;
(q) the following section is added after Section IX:
‘SECTION X
TRANSITIONAL MEASURES
Notwithstanding subparagraph A(1)(b) and A(6a) of Section I, with respect to
each Reportable Account that is maintained by a Reporting Financial Institution
as of 31 December preceding the entry into force of the Amending Protocol of
[date of signing] and for reporting periods ending by the second calendar year
following such date, information with respect to the role(s) by virtue of which
each Reportable Person is a Controlling Person or Equity Interest holder of the
Entity is only required to be reported if such information is available in the
electronically searchable data maintained by the Reporting Financial
Institution.’;
(9) Annex III is amended as follows:
(a) the heading is replaced by the following:
‘ADDITIONAL DATA PROTECTION SAFEGUARDS REGARDING THE
TREATMENT OF THE DATA PROCESSED UNDER THIS AGREEMENT’
(b) paragraphs 3 and 4 are replaced by the following:
‘3. Data minimisation
The personal data processed by the Contracting Parties under this
Agreement shall be relevant and limited to what is necessary and
proportionate to the purposes set out in this Agreement.
The Contracting Parties shall not exchange personal data revealing racial
or ethnic origin, political opinions, religious or philosophical beliefs, trade
union membership, genetic data, biometric data for the purpose of
uniquely identifying a natural person, or data concerning the health or sex
life of the individual.
4. Transparency, right of access and rectification and erasure of data
Where personal data is used for other purposes within the receiving
jurisdiction or is transmitted by the receiving jurisdiction to a third
jurisdiction (being a Member State or Monaco) in accordance with Article
6(5) of the Agreement, the Competent Authority of the receiving
jurisdiction using the personal data for other purposes or transmitting it to
a third jurisdiction shall inform the persons concerned. This information
shall be provided in sufficient time for the individual(s) concerned to
exercise their data protection rights and, in any case, before the receiving
jurisdiction has used the personal data for other purposes or transmitted it
to the third jurisdiction.
With respect to any personal data processed under this Agreement, any
individual shall have the right to obtain access to personal data concerning
him or her and to obtain rectification of inaccurate personal data
concerning him or her. Where personal data has been unlawfully
processed the individual may obtain its erasure.
To facilitate the exercise of this right, each individual shall be entitled to
submit requests for access to and rectification and/or erasure of their data;
these requests shall be addressed to the other Competent Authority
concerned through the individual’s own Competent Authority.
The requested Competent Authority shall provide access to the relevant
data and, where appropriate, update and/or correct any inaccurate or
incomplete data.’
(c) paragraphs 6 and 7 are replaced by the following:
‘6. Automated processing
The Competent Authorities shall not take any decision which produces
legal effects concerning an individual or significantly affects him or her
and which is based solely on automated processing of data.
7. Transfers to authorities of third countries
A Competent Authority may occasionally transfer personal data received
pursuant to this Agreement to public authorities of third jurisdictions,
other than the Member States and Monaco, if all of the following
circumstances apply:
(a) the transfer is necessary for the purposes specified in Article 6(4) in
the receiving third jurisdiction and the personal data will be used by
the receiving third jurisdiction only for such purposes;
(b) the personal data is relevant and proportionate to the purposes for
which it is transferred;
(c) the competences of the third jurisdiction authority are directly
related to the purposes referred to in Article 6(4);
(d) the receiving third jurisdiction guarantees a level of protection of
personal data equivalent to that established by this Agreement, and
undertakes not to transfer the received data to any third parties;
(e) the Competent Authority that provided the information has given
prior authorisation in accordance with the conditions set out in
Article 6(5); and
(f) the data subject has been informed of the transfer.
Any other transfers of information received pursuant to this Agreement to
third parties shall be prohibited.’
(d) paragraph 10 is replaced by the following:
‘10. Oversight
The processing of personal data by Reporting Financial Institutions and
Competent Authorities under this Agreement shall be subject to the
independent supervision of: (i) for Member States, the national data
protection supervisory authorities established under Regulation (EU)
2016/679 and (ii) for Monaco, the Autorité de protection des données
personnelles (Monaco's Data Protection Authority).
Those data protection supervisory authorities of the Member States and
Monaco shall have effective powers of oversight, investigation,
intervention and review, and must have the power to refer violations of
law for legal action, where appropriate. They shall in particular ensure that
complaints relating to non-compliance are received, investigated,
responded to, and appropriately redressed.’
(10) in Annex IV, subparagraph (ac) is deleted.
Article 2
Entry into force and application
1. This Amending Protocol is concluded subject to its ratification or approval by the
Contracting Parties in accordance with their internal procedures. The Contracting
Parties shall notify each other of the completion of these procedures. This Amending
Protocol shall enter into force on the first day of January following the last
notification.
2. Notwithstanding paragraph 1 of this Article, Article 1(2), (3)(b) and (8)(c) of this
Amending Protocol shall apply as of the date on which the Principality of Monaco
begins to apply the CARF with all Member States.
Article 3
Languages
This Amending Protocol shall be drawn up in duplicate in the Bulgarian, Croatian, Czech,
Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian,
Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and
Swedish languages, each text being equally authentic.
IN WITNESS WHEREOF, the undersigned Plenipotentiaries have hereunto set their hands.
Done at Brussels on the twelfth day of July in the year two thousand and sixteen.
For the European Union
For the Principality of Monaco
DECLARATIONS OF THE CONTRACTING PARTIES:
JOINT DECLARATION OF THE CONTRACTING PARTIES ON THE AGREEMENTAND
THE ANNEXES
The Contracting Parties agree, regarding the implementation of the Agreement and Annexes I
and II thereto, as amended by the Amending Protocol of [date of signing], to use the
Commentaries to the OECD Model Competent Authority Agreement and Common Reporting
Standard, as well as the Commentaries to the 2023 Addendum to the OECD Model Competent
Authority Agreement and to the 2023 update to the Common Reporting Standard, as a source
of illustration or interpretation and in order to ensure consistency in application.
JOINT DECLARATION OF THE CONTRACTING PARTIES ON ARTICLE 5 OF THE
AGREEMENT
The Contracting Parties agree that Article 5 of the Agreement is aligned to the latest OECD
standard on transparency and exchange of information in tax matters enshrined in Article 26 of
the OECD Model Tax Convention. Therefore, the Contracting Parties agree, regarding the
implementation of Article 5 that the commentary to Article 26 of the OECD Model Tax
Convention on Income and on Capital should be a source of interpretation.
JOINT DECLARATION OF THE CONTRACTING PARTIES ON THE ENTRY INTO
FORCE AND IMPLEMENTATION OF THE AMENDING PROTOCOL
The Contracting Parties declare that they expect that the constitutional requirements of the
Principality of Monaco and the requirements of European Union law concerning entering into
international agreements will be fulfilled in time to enable the Amending Protocol to enter into
force on the first day of January 2026. They will take all the measures in their power to achieve
that goal.