Monaco: France questions agreements

The Fabius report about relationships between France and Monaco has been joined by multiple proposals which may provoke a fiscal and financial quake in the Principality.

Monaco did not last to react to the publishing of the Fabius report, on Monday October 9th, on the Ministry of Finance site. The report is entitled: 'Report about economic and financial relationships between France and Monaco'. If, before the summer, the bad marks which had been given to the Monegasque financial place, according to the battle against laundering had not received an immediate answer, for this report, it was rapidly made. On Tuesday, October 10th, at 2:00 pm, a press conference, broadcast in video duplex with Paris, was presided by SEM Patrick Leclercq, State minister of the Principality, with Franck Biancheri, government counsellor for Finances and Economy and Patrice Davost, judicial services manager.All the relations analyzedThis report can be entirely read at www.finances.gouv.fr. It deals about the reproaches which had already been made by the GAFI or by the French parliamentarian report, whose title was an accusation, or by the Forum of financial stability.Today, it is the whole Franco-Monegasque relationships which have been analyzed: custom and fiscal systems, monetary and financial relations, with a chapter dedicated to the battle against money laundering. Among the critics, the problem of off-shore companies, trusts, the few means the Monegasque bodies have to combat money laundering, the low cooperation with French authorities…French proposalsBut, beyond the critics, a wide panel has been dedicated to act propositions. Those proposals question a great deal of nowadays practices coming from the 1963 agreement which deals about Franco-Monegasque relationships in fiscal, custom, insurance, telecommunication, and pharmaceutical fields.Urgent proposals:-supervision of the Monaco Casino like French Casinos by French customs-take legislative or conventional measures to tax with the ISF French people living in Monaco-impose a declaration of accounts of Monaco banks-set up a public accountancy to allow a real calculation-modify the 1963 agreement, according to profit tax-modify the 1950 agreementIf these proposals are applied, it risks to provoke a great quake.