As Monaco works to enhance its appeal to entrepreneurs and investors, a significant obstacle is slowing momentum: the increasing difficulty in opening corporate bank accounts. Can banks effectively override business authorisations granted by the Monégasque Government? That’s the question we explore with Robert Boisbouvier, President of the Chamber of Legal Advisors of Monaco.
Robert Boisbouvier, born and raised in the Principality, is the elected President of the Chamber of Legal Advisors of Monaco (Chambre des Conseils Juridiques de Monaco). He is a legal expert specialised in banking law, international taxation, and corporate law with experience in Chicago, Paris and Monaco.
How do you view the business landscape in Monaco?
“For decades, and in accordance with longstanding tradition, the Principality of Monaco has been regarded as a jurisdiction of exceptional prestige and strategic value for commercial enterprises. The process of obtaining governmental authorization to conduct business within the Principality is deliberately rigorous, comprehensive, and highly selective.
The granting of such authorization constitutes not merely administrative approval, but a formal acknowledgment of the applicant’s integrity, quality, and alignment with the standards of excellence upheld by the Monegasque State. Establishing a corporate presence in Monaco is not undertaken lightly; it reflects a level of distinction that few jurisdictions confer.
It must be unequivocally understood that sovereignty within the Principality resides exclusively in the person of the Prince and His Government. No other authority may claim or exercise sovereign power within Monaco.”
Have you seen changes in recent years regarding business creation?
"Historically, the opening of a bank account in the Principality of Monaco was a consequential formality following the grant of authorisation to conduct business activities, within a retail and corporate banking sector marked by limited specialisation and diversification.
In the present day, however, the establishment of a banking relationship within Monaco has evolved into a distinct and separate authorisation process in its own right, subject to independent scrutiny and regulatory discretion.”
Under Monaco law, once business activity is authorised, shareholders have 30 days to complete registration. This includes depositing share capital (for commercial entities) or proving the opening of a bank account in a Monegasque institution (for sole proprietorships).
“There is a growing pattern of significant delays and unexplained refusals in the opening of bank accounts within the Principality. Over 300 companies, duly authorised by the Government of Monaco, have encountered operational paralysis due to their inability to establish banking relationships.
Newly incorporated entities frequently face non-transparent rejections, inordinate delays, or a total absence of response from financial institutions. Should they fail to secure a bank account within the statutory 30-day period following governmental authorisation, they are compelled either to recommence the entire authorisation procedure from the outset or to abandon their project altogether and proceed with incorporation in a foreign jurisdiction.”
Local banks are highly selective in their client criteria, often leaving legitimate entrepreneurs behind. But Mr. Boisbouvier believes a solution is possible.
“A concrete and practicable solution has been proposed: that duly regulated professionals—namely lawyers, notaries, chartered accountants, and legal advisors—be authorised to temporarily hold the share capital of newly formed companies under a fiduciary or regulated mandate.
Such a mechanism would allow the company to complete its registration with the competent authorities and commence operations, while continuing to seek a banking partner aligned with its business model and operational requirements. This would preserve the integrity of the authorisation process and uphold Monaco’s economic attractiveness, without compromising regulatory oversight.”
Isn’t there a law guaranteeing the right to a bank account?
“While a legal framework does exist, it has proven largely ineffective in practice. Decisions rendered under the applicable provisions are seldom enforced by banking institutions, which routinely invoke a narrow interpretation of legal provisions relating to the discretionary right of account access in order to justify non-compliance.”
Do you foresee any legislative changes?
“The necessary legal and administrative instruments are already in place. For instance, the Tax Collector’s Office of Monaco (Direction des Services Fiscaux) possesses the authority to register the in-laws of a company even in the absence of a fully constituted banking relationship. This includes the capacity to record the incorporation of a company with a qualified reservation concerning the deposit of share capital, thereby enabling administrative registration as a matter falling within its jurisdictional competence.
In parallel, we respectfully propose a second viable solution: that the Caisse des Dépôts et Consignations be expressly authorized to receive, on a provisional basis, the subscribed share capital of newly incorporated companies. Acting as a neutral and regulated intermediary, the Caisse could safeguard the capital during the transitional period of bank onboarding, thereby enabling the company to lawfully complete its incorporation and commence operations.
This mechanism would afford companies a critical window in which to engage with and present their business model to financial institutions established in Monaco, without prejudice to regulatory scrutiny or banking compliance requirements.”
Is the issue causing a drop in company formations?
“There is an increasingly palpable sense of entrepreneurial exclusion taking root. Numerous instances have come to light wherein company founders, faced with persistent banking barriers, have opted to open accounts in foreign jurisdictions. In doing so, they have also relocated associated patrimonial assets and private banking relationships outside the Principality.
This trend is deeply regrettable, as it results not only in the loss of entrepreneurial talent and innovation, but also in the long-term erosion of financial value that would otherwise have been retained and developed within Monaco’s economic and banking ecosystem.”
At a certain juncture, the Government will be required to take a clear and strategic position: should the Principality of Monaco develop a sovereign and functional corporate banking infrastructure of its own, underpinned by regulatory safeguards and public oversight, or continue to rely—de facto—on the outsourcing of such essential financial services to institutions with parent companies domiciled beyond its borders.
Does outsourcing to foreign banks improve transparency?
“The reliance on foreign banking institutions raises more concerns than advantages. Such institutions apply their own independent compliance frameworks, and the opening of an account cannot be presumed or guaranteed. More critically, this practice gives rise to significant questions regarding fiscal substance.
Where a Monegasque-registered entity conducts its operations exclusively through a foreign banking institution, it creates an exposure whereby foreign tax authorities or European judicial bodies may assert that the company’s effective place of management—and thus its taxable base—lies outside the Principality.
In the absence of meaningful improvements in onboarding practices by local financial institutions, the implementation of legally sound intermediary mechanisms to facilitate corporate formation becomes not only necessary, but urgent.
If resistance to such intermediary solutions persists among local actors, one must question whether such opposition is motivated by legitimate regulatory concerns or by ancillary economic interests—such as the ability to generate fees through the imposition of additional compliance reviews or advisory mandates.”
What are the consequences of these banking difficulties?
“Put simply, without access to a bank account, a business cannot lawfully or effectively operate. As a consequence, the Principality is forgoing legitimate and valuable economic opportunities that would otherwise contribute to its growth and diversification.”
Although Monaco has 36 banks, only nine offer corporate accounts. Some sectors are hit harder than others.
Which sectors are most affected?
“In the yachting sector, which constitutes a strategically vital component of Monaco’s economy and international positioning, only two banking institutions currently maintain active support for yachting-related services. This narrowing of access is a matter of serious concern and raises broader questions regarding sectoral sustainability and financial inclusion.
As a further and third proposal, we advocate for the urgent enactment of legislation enabling Monegasque professionals—namely lawyers, legal advisors, chartered accountants, and notaries—to lawfully hold client funds in escrow under a regulated framework.
This would provide a lawful and controlled mechanism for professionals to act as temporary custodians of corporate funds, thereby allowing them to manage and safeguard vital business operations in circumstances where companies are confronted with arbitrary bank refusals or the sudden termination of existing banking relationships.
Such a legislative measure would not only enhance legal certainty and operational continuity, but also reinforce Monaco’s institutional resilience and its capacity to protect legitimate economic actors within its jurisdiction.”
Has the FATF greylisting worsened the situation?
“Yes, significantly. The increased regulatory pressure has led banks to apply tighter compliance standards—but without local counterbalances. The result is almost systematic refusals, often with no justification.”
What is the primary focus of banks in Monaco?
“Private wealth, quite understandably, remains a cornerstone of Monaco’s international reputation as a premier financial centre for wealth management, succession planning, and patrimonial structuring.
It is precisely for this reason that the present issue must be raised: what vision does the Principality hold for the future of corporate banking within its borders?
For entrepreneurs seeking clarity or legal assistance, Mr. Boisbouvier and his team at the Chamber of Legal Advisors of Monaco are ready to advise.”
As the elected President of the Chamber of Legal Advisors of Monaco, Mr Boisbouvier highlights that legal advisors are private sector players with an economic focus, whereas lawyers are civil actors within the judicial system, oriented towards the judiciary.
“Legal advisors are distinct from lawyers in both function and positioning. Unlike members of the Bar, we act not as officers of the judiciary, but as economic actors whose primary mandate is to anticipate, prevent, and resolve disputes before they escalate into litigation.
Our role is inherently preemptive and solution-oriented, operating in closer alignment with the executive and administrative dimensions of governance, whereas lawyers traditionally maintain their institutional proximity to the judicial sphere.
This dynamic aligns with the classic tripartite separation of powers: legislative, judicial, and executive. Legal advisors’ alignment with the executive branch underscores their role in the economic sphere, contrasting with lawyers’ alignment with judicial power, emphasising their role within the civil and judicial framework.
It is incumbent upon us – global and beyond the Chamber, reaching respectfully here to AMAF -, as licensed professionals in the fields of law, finance, and accountancy, to adopt a proactive posture. We stand ready to advance innovative, pragmatic solutions—whether in the realms of tax structuring, legal reform, banking or economic policy—to ensure that the Principality of Monaco is not only prepared to meet but is positioned to lead through the challenges and opportunities of the next ten to twenty years.
There is only one Sovereign when it comes to authorizing businesses in Monaco — and that is the Princely Government. This is the position we firmly recognize and support,” – concludes Mr Boisbouvier.
That being said, Mr Boisbouvier and the Chamber of Legal Advisors of Monaco also acknowledge that banks maintain full discretion in choosing their clients. However, they are witnessing a growing number of rejections that are often unexplained. These affect not only businesses but also associations. Moreover, they are increasingly seeing arbitrary closures of accounts held by associations and syndicates, alongside refusal to open new accounts for historic associations.
This message is in no way a criticism of the AMAF, nor aimed at the AMAF. Rather, it is a call for attention to the current economic climate in Monaco. If anything, it is an attempt to serve as an indirect spokesperson for the concerns many entrepreneurs are feeling today and expecting answers on the several solutions that Mr Boisbouvier propose to install to help.
EXCLUSIVE:
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