Family offices, discreet structures at the heart of wealth management, are in a prime position to gauge the reaction of Monaco residents to the Principality’s inclusion on the FATF Grey List and the EU’s High-Risk List. According to Philippe Feller, founder and director of PF MFO, “Investments are continuing, even if some delays for opening accounts or cross-border transfers have been longer.”
How do you view Monaco’s inclusion on the FATF Grey List and the EU’s High-Risk List? What was the initial reaction of international clients and partners to this news?
Monaco’s inclusion on the Grey List naturally raised questions but we see it as a step in a process of continuous improvement for the financial marketplace. Our clients and partners were cautious at first, which is understandable, but the majority quickly engaged in constructive dialogue. The transparency of our internal processes has allowed us to maintain their trust.
Have you observed a change in the discourse of foreign custodian banks, lawyers or asset managers, regarding Monaco since this listing?
Since the listing, foreign banks, lawyers and asset managers are more attentive and request more details or additional documents. This is primarily due to their regulatory obligations. The dialogue remains constructive and trust is intact.
Have you observed a slowdown, flight, or, conversely, an adaptation within the family office sector since the decision? There is talk of several FOs and MFOs leaving.
In the family office sector, we have not observed a mass exodus – on the contrary, people are adapting, strengthening their compliance procedures and communicating more with their partners.
Has there been a concrete impact on account openings, fund transfers or cross-border investments?
Operationally, some account opening and cross-border transfer times may have increased but operations and investments continue. By remaining proactive and transparent, we maintain efficiency and the trust of our partners.
How is your family office adapting to the new regulatory and reputational environment? Despite the challenges, what advantages do you retain in Monaco to foster client loyalty?
Our multi-family office is adapting by strengthening internal standards and improving compliance procedures, whilst continuing to provide personalised support to our clients. Monaco retains its strengths: political stability, robust regulations, a professional environment and an attractive quality of life, all of which reassures and retains our clients.
Have any of your clients considered relocating or have already relocated their structures to another jurisdiction (Switzerland, Luxembourg, Dubai, etc)? How does this situation affect your relationships with correspondent banks or foreign partners? What measures have been taken internally to reassure clients and partners?
None of our clients have considered relocating their structures. Banks and partners are more attentive to compliance but communication remains fluid. Internally, we have strengthened our processes and communicated transparently and regularly to maintain trust and secure our relationships.
Do you think the Monégasque government has communicated effectively with economic and financial stakeholders?
The Monégasque government has communicated clearly on the ongoing reforms and measures, notably through regular webinars organised by the Monaco Financial Sector Association. This has helped clarify the issues and maintain a climate of trust with market participants.
Are you concerned about a domino effect on other financial or economic sectors (real estate, private banking, investment funds)?
We do not foresee the risk of a domino effect on other sectors such as real estate, private banking or investment funds. Monaco retains its fundamentals: stability, sound regulation and attractiveness, which reassures economic and financial stakeholders.
