A Modern Update to a Landmark Agreement
In October 2025, the Principality of Monaco and the European Union signed a protocol amending their 2016 agreement on the automatic exchange of financial account information, aligning Monaco’s framework with the OECD’s updated Common Reporting Standard (“CRS 2.0”).The signing took place in Brussels on 13 October 2025, alongside similar updates with Andorra, Liechtenstein, and San Marino. The revised text integrates new reporting categories such as digital assets, e-money and central-bank digital currencies, strengthens due-diligence duties for financial institutions, and updates data-protection references to ensure compliance with the EU’s GDPR.
EU Taxation Director-General Gerassimos Thomas stated:
“These agreements underscore the EU’s commitment to transparency and international cooperation. By updating and aligning them with revised OECD standards, we are enhancing tax compliance and ensuring a level playing field internationally.”
According to Monaco’s Minister of Finance and Economy Pierre-André Chiappori, the protocol confirms the Principality’s “unwavering commitment to the highest international tax standards,” keeping pace with evolving OECD expectations while preserving Monaco’s fiscal sovereignty.
The 2016 EU–Monaco Agreement: From Secrecy to Transparency
The original 2016 accord replaced a limited 2004 “Savings Directive” arrangement with a comprehensive system for automatic annual exchange of bank and investment account information between Monaco and all EU member states.Each year, Monaco transmits to EU tax authorities identifying and financial data on accounts held by EU residents—balances, dividends, interest, and proceeds from asset sales—while receiving equivalent data for Monaco residents with EU accounts. This is similar to exchanges with other non-EU jurisdictions.
The aim, in the EU’s words, was “to prevent taxpayers from hiding capital representing income or assets for which tax has not been paid.” The agreement entered into force on 1 January 2017, marking a decisive end to traditional banking secrecy and integrating Monaco into the OECD’s global transparency network.
What the 2025 Protocol Changes
The 2025 amendment primarily aligns the Monaco–EU framework with the OECD’s 2022 CRS revision, already transposed in the EU’s Directive on Administrative Cooperation (DAC8).Key elements include:
- Wider asset coverage – reporting now extends to digital currencies and electronic-money products.
- Stronger verification – enhanced due-diligence rules for Financial Institutions to confirm clients’ tax residencies.
- More detailed reporting – granular account and transaction data to improve tax-authority use.
- Modernised privacy safeguards – explicit integration of GDPR-level protections.
Historical and Policy Context
For decades Monaco’s financial model relied on discretion and the absence of income tax. Under Prince Albert II, however, the Principality repositioned itself as a cooperative financial centre. Since 2009 Monaco has signed numerous Tax Information Exchange Agreements, joined the OECD’s Global Forum on Transparency, and has consistently been rated compliant with international standards.The 2016 agreement with the EU—hailed by then-Commissioner Pierre Moscovici as “improving tax compliance by private savers”—placed Monaco within Europe’s automatic-exchange network. Successive reforms of Monaco’s AML and tax laws (including implementation of the EU’s 6th AML Directive) have reinforced that stance. Monaco today appears on no EU or OECD tax blacklist, a point the government highlights as proof of its adherence to fair-tax principles.
Why the Update Matters
Financial innovation—particularly crypto-assets and fintech products—created new avenues for potential tax evasion. The OECD’s 2022 revision of the CRS closed those gaps; the EU then mirrored it in DAC8; and Monaco’s 2025 protocol now ensures full equivalence.Without this update, the 2016 text risked falling behind global practice. By signing promptly, Monaco demonstrates continued cooperation with the EU and the G20 agenda against tax evasion and money-laundering.
For the EU, these micro-state protocols ensure that Europe’s immediate neighbours apply identical transparency standards, protecting the integrity of the single market. For Monaco, they secure recognition as a trusted, rules-based financial jurisdiction—vital for investor confidence and international reputation.
The Broader Picture
Over 160 jurisdictions now participate in the OECD’s Automatic Exchange of Information framework. The EU remains its strongest advocate, continually updating the DAC regime to address new technologies and intermediaries. The simultaneous 2025 updates with Andorra, Liechtenstein, San Marino—and soon Switzerland—extend that network across all European financial centres.As Gerassimos Thomas summarised, “effective measures are in place to prevent tax fraud and ensure a level playing field.” The forthcoming 2026 exchanges will therefore capture digital assets and modern financial products, giving tax authorities a more complete view of cross-border wealth.
Looking Ahead
Once ratified, the amended agreement will take effect from 2026. Monaco’s government describes the signing as “a natural continuation of its policy of fiscal cooperation with the European Union and the OECD.”Minister Chiappori reaffirmed that Monaco is “firmly engaged in the fight against tax fraud and evasion,” while maintaining its sovereign fiscal identity. For the EU, the protocol closes one more potential loophole; for Monaco, it marks the next step in a two-decade transformation from secrecy to transparency—anchoring the Principality among the world’s most compliant financial jurisdictions.
At Rosemont Consulting SARL (Monaco), our experts stand ready to guide clients through these changes. We provide tailored support in cross-border tax compliance and reporting, succession planning, CRS classification advisory, and fiduciary structuring. Our team can help you navigate the amended AEOI requirements and ensure your wealth structures remain compliant and optimized under the evolving transparency standards.
For more information, please contact consulting@rosemont.mc
Sources:
European Commission – Taxation and Customs Union: "EU strengthens international tax cooperation with Andorra, Liechtenstein, Monaco and San Marino" (News article, 13 Oct 2025)taxation-customs.ec.europa.eu
Monaco Government (via Monte Carlo Living): "Monaco renforce sa coopération fiscale avec l’Union européenne" (14 Oct 2025) montecarloliving.com
Monaco Now (Government Communication): "Monaco committed to fiscal transparency"monaconow.com
EU Council Official Journal: Council Decision (EU) 2025/2125 of 10 Oct 2025 – amending Monaco-EU agreement on automatic exchangeeur-lex.europa.eu
European Council Newsroom (ECFIN): "Fighting tax evasion: Monaco taxation agreement approved by EU" (13 Oct 2016)ec.europa.euec.europa.eu