The European Union and Monaco have today signed an automatic exchange of information agreement.
This agreement, which is to be ratified by Monaco by 2018, boosts the EU’s progress towards tax transparency and combating tax avoidance and evasion.
Negotiations between Monaco and the EU have last for almost two years and half. The deal complies with the OECD global standard for the automatic exchange of information.
As from 2018, Monaco and the EU 28 will start to exchange information on the financial accounts held by citizens of the EU 28 living in Monaco.
Monaco’s government said it expects the implementation of the agreement will require a considerable investment in a short time and that it will only be possible through the assistance of a third-party company, which is in a process of being selected pending the outcome of further analysis by the government.
Monaco’s ministry of Finance and Economy Jean Castellini said EU member countries still blacklisting Monaco for non-cooperation or non-transparency will have to remove the country from their “discriminative lists” in order to support the progress made by the principality in the fight against tax fraud and evasion.
Last week, Andorra signed a similar deal, following these signed in 2015 by Switzerland, Liechtenstein and San Marino.
European commissioner for economic and financial affairs, taxation and customs Pierre Moscovici said the deal “strengthens Monaco’s international reputation”.