Monaco and the United States sign a cooperation agreement regarding tax information (September, 2009)

Before the opening of the G20 Summit in Pittsburgh, which was scheduled at the end of September, the Principality of Monaco reached a significant step towards “coming out the grey list of the OECD” (Organization for Economic Cooperation and Development) by signing a Tax Information Exchange Agreement (TIEA) with the United States on September 8, 2009.

At 4:30 pm local time (Washington D.C.), H.E. Franck BIANCHERI, Government Councilor for External Relations and for International Economic and Financial Affairs and the Honorable Neal S. WOLIN, Deputy Secretary, Department of The Treasury, signed a cooperation agreement regarding taxation matters.

Similar to the agreements previously signed by the Principality, this TIEA is completing the provisions at the governmental level of the agreement signed in 2001 between the AMAF (Monegasque Association of Banks and Financial Institutions) and the IRS, regarding the Rules “Know Your Customer”, which already enabled the Principality to belong to a “Qualified Intermediary” Jurisdiction.

While talks still continued with several countries, this signature took place after the OECD World Forum (in Mexico, September 1-2), and before the beginning in New York of the 64th session of the General Assembly of the United Nations, which H.S.H. Prince ALBERT II of Monaco attended.
H.E. Franck BIANCHERI declared to be “extremely satisfied with the signing of this agreement, which concludes a team effort, involving the Department for External Affairs in Monaco about the finalization of the text and the Embassy of Monaco in Washington D.C. concerning the relations with the American authorities.”

Since then, in order to get off of the grey list, Monaco, like other countries, has negotiated more than twelve bilateral agreements of this kind. Hence, Monaco has been moved to the white list established by the OECD.
Completed with practical provisions for their application, these texts will eventually have to be integrated into the Monegasque internal law by Sovereign Ordinance.