Major challenges in Monaco: Banks

 December 2, 2019




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Monaco’s banking and financial sectors offers you an estimated 40 banks and 50 wealth management companies, family offices and financial advisors in which to choose from, and together they are managing funds of almost 100 billion euro.

Once you have decided to relocate to the Principality of Monaco, one of your very first steps will be to open a local bank account.

It is an obvious step because without an (employment contract) or confirmation from the bank that you have the sufficient financial means to live in the territory of the Principality of Monaco you simply have no chance to successfully apply for a residence permit.

Monaco’s banking and financial sectors offers you an estimated 40 banks and 50 wealth management companies, family offices and financial advisors in which to choose from, and together they are managing funds of almost 100 billion euro.

The amount required to open a bank account for residency is a prerequisite for the government. It has never been regulated; however the Association Monégasque Des Activités Financières or AMAF recommends a minimum of 500,000 euro as deposit.

The government only requests your chosen bank to provide a letter stating you have sufficient means in which to live in Monaco. For this reason, the volume of your deposit amount is only important for you and your chosen bank or wealth manager.

Monaco offers a good selection of banks, wealth managers and family offices, yet very few of them are empowered to receive all types of deposits. Therefore, if you need a specific service in the future then it is always better to pre-check before you select and commit to a bank or wealth manager.

Also, try to decide whether you need a bank, wealth management company or even a family office. If you are moving to Monaco because of employment, there are many options to open a bank account with a small deposit, however on the other scale, if you need a custom-tailored wealth management service and / or some independent investment advice, there are many options in Monaco.

The most important for you is to find the right partner who can fulfil your needs and speaks your language.

It is also good to know that all licensed banks in the Principality of Monaco, as well as the fund and portfolio management companies all belong to the Monégasque Association of Financial Activities, which is a member of the European Banking Federation, also note that Monaco is in the Eurozone and the SEPA (Single Euro Payments Area).

All the members of the Monégasque Association of Financial Activities are subject to regular supervising, and these supervisions take place with the highest level of confidentiality to ensure the undisturbed operation of the Monégasque banking establishments. They are there to protect the residents and the investor’s best interests.

For many years now, the Principality of Monaco takes serious steps and an active fight against money laundering, corruption and terrorist financing. These steps often reach international levels as well.

The Principality of Monaco has created its own Financial Investigation Unit, called S.I.C.C. FIN (Service d’Information et de Contrôle sur les Circuits Financiers). The S.I.C.C. FIN works together on an international level with more than 130 countries all around the globe. It has a role to suspend financial transactions carried out by professionals who are subject to legal matters.

This dedicated care and attention helped Monaco to develop and modernize its banking system and its financial sector. It supports practices and quality standards that are globally recognized by all European financial institutions.

When you look for a bank or wealth manager, you can find various offices in the Principality of Monaco from the traditional to the new. Many wealthy residents diversify their wealth by using multiple banks.

Finally, try to avoid the moral hazard. In the wealth management industry (in general all around the world) many brokers and fund managers are highly bonus oriented, based on the transactions they make. This compensation is not always based on getting results, but on the number of charged transactions on the client, and the result can become secondary.

In Monaco, it is a standard practice that many client representatives take you out for fancy dinners, perhaps for clubbing or they will offer you some nice gifts, invitations to the Formula 1, etc... However, frankly, you cannot replace a fancy promise or a shiny advertisement with real life experience.

Start to build up local relationships in Monaco, and ask for their personal recommendations and observations, why they chose them and what where the benefits of their chosen partner.

Do you have a question?

Monaco Wealth Management is working with the some of the most experienced advisors in the Principality of Monaco.

Since 2010 we gained a member base of 9,000 Monaco residents, and our trusted partner, VK*P business advisors have over 3,000 people informed and guided on business and residency matters. If you have any questions about Monaco residency, business formation or business development we are happy to assist you in English, French, Italian and Spanish. Please feel free to contact us.



Interested to learn more about the Principality of Monaco?

Monaco: The Essential Relocation Guide

“Monaco: The Essential Relocation Guide” This comprehensive book is dedicated to all current and future residents of the Principality of Monaco.

In this book, contributing authors André C Perry, Charlotte Easterbrook and Zsolt Szemerszky have compiled the most important and vital information required to help guide you through the process of relocating to the Principality of Monaco. Being independent experts, they also spiced up the chapters with their personal knowledge on the relocation process to create this in-depth and essential relocation guide.

Living in Monaco

Living in Monaco book is a professional relocation itinerary written by Zsolt Szemerszky.

A comprehensive, objective and brutally honest book about the Principality of Monaco and its living environment. The author intended to hunt down the myth around Monaco and to go beyond gossips.

It is not a travel book, it is an ultimate guideline to those who are aiming to get a glimpse about the real Monaco and who have the desire to relocate their personal or business life to the Principality.

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