The End of Banking Secrecy for European citizens in Monaco

Thursday June 23, the European parliament has voted a convention with Monaco regarding tax fraud. This convention aims to discourage european citezens in trying to hide liquid money on banking accounts. The deputies adopted the proposal by 549 votes in favour, 16 agains and 23 abstentions. Recall that the European Union and Monaco signed an agreement on 22 February 2016, the fight against fraud and tax evasion. Today, the two parties make common cause with the automatic transmission of information between jurisdictions, and that from 2017. Now everything will be scrutinized: interest, dividends, account balances as well as all financial products. The formal signing is expected before the summer holidays, when the Council will authorize it. This agreement would ensure that Monaco apply more stringent measures equivalent to those in force in the European Union since March 2014. The agreement also meets the 2014 standards regarding the automatic exchange of information standard for financial accounts set up by the OECD. The tax administrations of the Member States and Monaco will: • identify correctly and unequivocally the taxpayers, • administer and strengthen their tax laws in cross-border cases, • assess the risk of tax evasion perpetuated, • and avoid further investigations if they are not needed. Identical agreements have been concluded with Switzerland, Liechtenstein, San Marino and Andorra. Source : European Parliament www.europarl.europa.eu