This article is for general information only. You should not act or refrain from acting in reliance of it. You should always obtain professional advice on the facts of your particular case. Nothing in this article constitutes financial advice. The owner of this site accepts no liability.
 

 

Monaco banks are about personal service. The banks know their clients and offer a one to one face to face bespoke service. Bankers in Monaco deal with a small number of clients to make this possible. It is both "know your client - KYC" and "know your banker - KYB".

 

This means that if a client starts to lose capacity it becomes immediately apparent to the bank. This does not matter if funds are held in trust or by corporate entities as trustees and directors continue to give instructions to the bank. 

 

It is however an issue for accounts held directly in the name of the client. Banks usually freeze accounts if they consider their client has lost capacity. In 2019 Monaco passed a law allowing people to create lasting powers of attorney. This allows someone with capacity to appoint another physical person to manage their affairs if they lose capacity. There are various safeguards to ensure it is not abused.

 

Monaco allows English lasting powers of attorney to be used if the person is a UK national again subject to various safeguards. In this case a corporate professional trustee ot trust corporation can be appointed attorney. This may be preferable if members of the family wish to be distanced from day to day management. 

 

This can be a difficult matter to raise but decisions early on make a big difference and avoid complications and delays for the family.

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