FRSGlobal : Risk Analysis and Regulatory Reporting

Regulators in Monaco

Monaco is subject to French regulations and therefore supervised by the same financial authorities :

• Comité des établissements de credit et des entreprises d’investissement (Credit Institutions and Investment Firms Committee) (CECEI)
• La Commission Bancaire (The Banking Commission)

FRSGlobal in Monaco

Monaco is the second smallest independent state in the world, and one of the richest. Customs, postal services, telecommunications and banking are governed by an economic and customs union with France. The country is also a major banking centre.

In March 2009, in an ongoing attempt to remove itself from the Organization for Economic Cooperation and Development's (OECD) list of uncooperative tax havens, Prince Albert announced plans to allow for greater financial transparency.

Monaco plans to grant foreign tax authorities access to information about foreign tax holder accounts in the principality. By September that year, Monaco had signed agreements with 12 countries to provide greater transparency and had made the OECD "white list" by October.

Regulatory Environment — Monaco

Monaco follows French regulations and is supervised by the same financial authorities - the Banking Commission and Credit Institutions and Investment Firms Committee (CECEI) and the Banking Commission (La Commission Bancaire).

Statutory

SURFI (non-ECB reports)

Our reporting solution includes reports under SURFI, balance sheets, off-balance sheets, P&L reporting of initial and residual duration, loans granted breakdown by economic agent and residence and currency, derivative reporting, liability breakdown by economic agent and residence and currency, and money laundering.

Prudential

CoREP
Our COREP application is integrated into the solution for Monaco - finely tuned to meet local discretions. This type of reporting comprises of report templates and data processes or calculations related to capital charge and risk. It includes information on the common reporting requirements of the EBA with calculation of credit risk and market risk based on the standardised approach and t operational risk on the basic indicator approach.

Large Exposures Reporting
Financial institutions are required to provide large exposures reporting by beneficiary when the entire gross risk exceeds 10% of own funds. Our solution determines the beneficiary to be declared and gross and weighted credit risks are calculated in line with COREP rules (only standard approach).

Liquidity reporting
Liquidity reporting in Monaco is based on the standardised and advanced approaches. Credit institutions are required to calculate liquidity ratio and ratios relating to their forecast liquidity position called observation ratios on the basis of the French Franc and foreign currency accounts.

Statistical

SURFI (ECB reporting)
Our reporting solution includes reports under SURFI — all monetary reporting. For details please see the SURFI section.

Securities reports
Our solution covers the securities reporting requirements for PROTIDE (quarterly reports for securities held by financial institution or on behalf of customer), OPCVM (quarterly reports on UCITS).

Transactional

Report Payments of Customers (RPC)
This type of reporting is mainly concerned with information on all customer transactions greater than 50,000 € with non-resident counterparties who do not belong to the SEPA zone. This is a mandatory monthly reporting that came into effect since January 2011.

Customers Report Transactions (CRT)
Financial intermediaries are required to report their cross border transactions with non residents and provide information on their branches, subsidiaries and affiliates overseas to feed the balance of payments statistics (income, financial services, direct investment and financial derivatives) and international investment position. These reports are required to be submitted on monthly or annual basis based at declaration level.

Customer Report payment Cards (CRC)
This type of reporting covers transactions made from cross border card payments. These statements cover all payments received or paid in transactions conducted face to face (transactions with a physical presence of cardholder at the point of transaction), all transactions of cash withdrawals (ATMs, cash withdrawals the counter and all remote transactions (internet, phone etc.). These reports are required to be submitted on monthly basis.

What’s coming Up — Monaco

New and updated regulation from 2011

Comptes-rendus de Transaction (CRT)

As per Technical note DGS n°09-01, from January 2011 banks are required to submit new report on cross border operations of financial intermediaries (CRT). CRT identifies all cross border operations of financial intermediaries and provides details of their economic purpose through various broken down values of balance of payments.

Banks reporting with monthly frequency are required to submit this report, 20 working days after end of January 2011. Banks reporting with annual frequency are required to submit this report, 60 working days after end of 2011.

Based on the Technical note DGS n°09-02 banks are required to submit information on direct investment in the form of equity capital transactions and property investments. The forms A1, A2, B1 and B2 are reported only when the investment or disinvestment is greater than 15 million €.

The deadline to deliver this report is 20 working days after the investment or disinvestment was done.

Technical note DGS n°09-03:

End 2011 onward banks are required to submit annual statements on direct investment stocks of financial intermediaries in their branches, subsidiaries and affiliates abroad. The statements should be submitted by any resident financial intermediary who directly holds at least 10% of the share capital of a non-resident company at the closing date of the annual statement.

The deadline to deliver this report is 120 workdays after end of year 2011.

Comptes-rendus de cartes (CRC) – deadline January 2015

The Bank of France has introduced new reports on cross-border card payments as per Technical note DGS n°10-01. These statements cover: all payments received or paid in transactions conducted face to face (transactions with a physical presence of cardholder at the point of transaction), all transactions of cash withdrawals (ATMs, cash withdrawals over the counter and all remote transactions such as internet, phone etc.)

CRC is expected to be implemented by January 2012 or no later than January 2015.

CENTRA 2012 – deadline March 2012

CENTRA makes a census of all credit greater than 25000 € given to a counterparty with professional activity (no employee activity), this reporting will include new code post to make a distinction between healthy credit and doubtful cases. There is an accreditation period which is between 17 January 2012 and 15 March 2012 before going live, currently slated for 31 March 2012.