MONACO Law and Practice Contributed by: Donald Manasse, Donald Manasse Law Offices
of an asset belonging to the decedent or an estate is considered recel successoral . This is not a crimi - nal offence but the responsible party loses all rights to inherit the assets not voluntarily disclosed. There would not be significant “damages” per se in a “com - mon law” sense. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries There is no specific distinction for corporate or other professional fiduciaries in Monaco. The general obli - gation is to execute contracts in “good faith”, and this would apply to the fiduciary whose responsibilities arise as a result of the fiduciary relationship. Any bad- faith dealing might give rise to criminal responsibilities in “abuse of confidence”, which is a form of fraud. 6.2 Fiduciary Liabilities It is possible for a trust or similar entity that is consid - ered to have been improperly constituted or the equiv - alent of a “sham” to be disregarded, thus allowing the piercing of the veil. While there are reported cases that deal with corporations, there are no reported cases on this point regarding trusts, foundations or other enti - ties. Ordonnance no 8.635 of 21 April 2021 defines a trust or similar entity as that “juridical construction” where the assets are placed under the control of a third party that is distinct and not part of the patri - mony of the third party. This would prevent the trust or similar entity from incurring a risk of liability for the unrelated actions of the trustee or fiduciary. Exculpa - tory clauses and delegating authority for investments could protect fiduciaries from liability, as would the case law in the jurisdiction to the law of which the trust is subject. 6.3 Fiduciary Regulation There is an obligation for a trust created or trans - ferred to Monaco, or having a business connection with Monaco, to be registered at the Registry of Trusts under modifications of Law 214 enacted in 2024. Where the trustee is a foreign entity, there must be a local representative, which must have up-to-date, “adequate, exact and current information” backed by
documentation on the effective beneficiaries of each trust and concerning the identity of: • the settlor; • the trustee or trustees; • the protector(s), where applicable; and • any natural person who ultimately exercises effec - tive control over the trust. Where the trust is discretionary and the beneficiaries are not specified, the term “beneficiaries” refers to those whose primary interest is served by the creation of the trust or by its effects. The terms trust and trustee are to be understood in accordance with the Hague Convention. Trustees may be professionals (for example, depending on the jurisdiction, a lawyer or a trust company) if they are remunerated to act as trustee in a professional capac - ity, or non-professional (for example, a person acting without remuneration on behalf of their family). The Register of Trusts is not public. The information will be provided to any party showing a legitimate interest under the anti-money laundering laws, and to foreign governments requesting the information through international commissions rogatory. The fact that a beneficiary of a foreign trust is a Mona - co resident would not require the registration of the trust. Operation of a bank account or indirect owner - ship of property by the trustee is considered a “busi - ness connection” requiring registration. 6.4 Fiduciary Investment This is not applicable in Monaco. 7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship Foreigners intending to reside in Monaco must request a permit to do so, if they intend to spend more than three months in the principality. A European Union or European Economic Area national can apply direct - ly to the service of foreign residents of the Monaco police. Non-EU or EEA nationals must first obtain a
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