How can I invest in residency in Monaco if the majority of my local transactions are cash based?

Answers

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  Sylvain Fresia

  Fresia & Cie

  January 15, 2024

  We would need more information from you to understand if an account opening in Monaco can be considered. The situation you are detailing will require an in depth KYC procedure to be done by the bank (due to the cash heavy nature) to remain compliant with anti-money laundering and counter terrorist financing regulations. The documents requested will vary based on the specifics of your situation and will aim at establishing a clear picture of the origin of the funds. To give you a general idea, they will need documents confirming source of wealth (inheritance documents, personal or corporate account statements, consolidated yearly accounts of your company, divorce rulings etc… depending on what applies), details regarding the legal form of your business, the nature and location of the activity as well as all the standard KYC information (Nationality, residence etc.). Furthermore, please note that Monaco expects significant presence from its residents and the €500k+ is not an investment per se (as you remain free to invest it as you see fit, provided you always have €500k equivalent available as long as you are a resident of the country), but rather a proof of sufficient funds to reside in Monaco.

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  Peter Brigham

  Rosemont Monaco SAM

  January 12, 2024

  Monaco does not have a residence by investment "scheme" as such. Each application is based on its merits, subject to certain criteria such as the requirement to hold at least E500,000 with a Monaco bank when the applicant does not have local employment. The Monaco bank will undertake thorough due diligence on the origin of your wealth and the source of any funds to be transferred to them. They will want to verify that there is no suspicion that the funds may be of illicit origin, which by definition includes tax crimes. The specific documents will depend on the reality of your case and the nature of the transactions that you describe, and your tax situation in the jurisdiction where you reside and generate your revenue. Your existing bank is likely to be subject to very similar rules (based on the FATF recommendations) so should have been requesting similar types of information from you historically. I hope this helps.