Monaco and the European Union have recently signed an agreement for increased tax transparency, by which they will automatically exchange information for all financial accounts regarding all individuals residing in Monaco from 2018.
This will ensure that both jurisdictions are better prepared to identify and stop tax evaders, by cutting off their ability to hide income and assets in financial institutions overseas.
The EU Commissioner for Economic Affairs stated: ‘The agreement is significant in that it reinforces Monaco’s obligation to global tax transparency standards. Monaco has sent a clear message: we are joint allies with the EU when it comes to tax transparency in the fight against international tax avoidance and tax evasion.’
As per the new agreement, all member states will obtain the names, addresses, tax ID numbers of their residents with accounts in the territory, as well as other financial and account balance information.
The agreement is the latest of a series of international landmark deals the EU has signed with Andorra, San Marino, Switzerland and Liechtenstein.