In an increasingly complex and regulated environment, banks have been required over the last few years to hold more detailed information about their clients. These obligations to monitor the accuracy of the information held about clients enable banks to know their clients better, in order to offer them better support and protection.
The Compliance Department at CFM Indosuez Wealth Management, in cooperation with Crédit Agricole Group and in accordance with Monegasque law, defines and implements the non-compliance risk management policy in order to:
- Protect the personal data of clients and employees,
- Provide appropriate advice and prevent market abuse and conflicts of interest,
- Control the risks of money laundering, terrorist financing, breaches of embargoes and international sanctions, and tax evasion.
CFM Indosuez Wealth Management applies Crédit Agricole Group’s Code of Ethics. Our Code of ethics, beyond merely applying all the legal, regulatory and industry rules governing our various businesses, reflects our desire to do even more to better serve our customers, who have been our raison d’être since day one.
CFM Indosuez Wealth Management develops and implements a compliance mechanism in accordance with the obligations laid down by the Commission de Contrôle des Informations Nominatives (Monegasque personal data protection authorities - CCIN) regarding the protection of personal data, whether that of clients, employees or any third party associated with the Bank.
Pursuant to Monegasque Act 1.165 of 23 December 1993 (modified by Act 1.353 of 4 December 2008), all CFM Indosuez Wealth Management clients may exercise their right to access their data and request correction thereof.
In view of the entry into force on 25 May 2018 of Regulation (EU) 2016/679 of the European Parliament and of the 27 April 2016 Council on the protection of individuals with regard to the processing of personal data and on the free movement of these data, the Bank has chosen to extend this standard of enhanced data protection.
Financial markets offer a number of investment and return opportunities, as well as highly varied risks that clients must identify in order to ensure that their decisions correspond to their risk appetite.
Facing complex financial markets, the professionals at CFM Indosuez Wealth Management provide clients with their expertise and know-how, to provide them with the best investment advice.
In cooperation with its clients, CFM Indosuez Wealth Management assesses their financial literacy according to their knowledge of and experience with financial products, their wealth and their investment goals.
When the Bank provides investment advice, it ensures that the products recommended are suitable for the client receiving the advice.
Moreover, prior to any transaction, CFM Indosuez Wealth Management provides its clients with tailored information about the financial products and their risks to ensure that they fully understand the operation in question.
In line with the legal and regulatory obligations in force in Monaco, and in accordance with Crédit Agricole Group policies, CFM Indosuez Wealth Management has implemented specific measures to prevent money laundering, terrorist financing and corruption, and to ensure compliance with embargoes and the freezing of assets.
These measures include requirements based on international law as well as requirements laid down by Monegasque law.
CFM Indosuez Wealth Management operates in accordance with:
- The 40 recommendations of the Financial Action Task Force (FATF) adopted in February 1990 and revised in February 2012, which seek to prevent the use of the banking system for the purposes of laundering money of criminal origin.
- European Union directives of 26 October 2005 and 1 August 2006, which seek to harmonise the provisions of the Member States,
- Various extra-territorial obligations, especially vis-à-vis the US.
National obligations are the following:
- Act 1.362 of 3 August 2009 on preventing money laundering, terrorist financing and corruption,
- Sovereign Order 2.318 of 3 August 2009 setting the conditions for the application of Act
1.362 of 3 August 2009, amended by Sovereign Order 3.450 dated 15 September 2011 and by Sovereign Order 4.104 dated 26 December 2012.
These texts incorporate the international directives indicated above into Monegasque law, seeking to prevent money laundering and terrorist financing by the following means:
- Due Diligence checks performed at the start of a business relationship and on an ongoing basis,
- Monitoring of transactions in accordance with the rules on embargoes, the freezing of assets and the identification of the originators of transfers of funds (SR VII),
- Suspicious Activity Reports submitted for certain transactions to SICCFIN (Service d'Information et de Contrôle sur les Circuits Financiers - Financial Circuits Information and Control Service) and responses to requisitions from the Monegasque Police Department, especially within the framework of international cooperation agreements between Monaco and a number of States.
CFM Indosuez Wealth Management’s compliance with the national and international obligations indicated above is described in:
- The CFM Indosuez Wealth Management AML certification
- The Wolfsberg Questionnaire
- The US Patriot Act
CFM Indosuez Wealth Management implements the tax information exchange programmes established by Monegasque and international laws.
As part of the effort to prevent tax evasion, in July 2014 the OECD drafted a new standard for the automatic exchange of tax information between States, the Common Reporting Standard (CRS).
Joining the movement to reinforce international cooperation in tax matters and implement exchanges of information, Monaco has signed two multilateral agreements, legal instruments enabling the principality to develop its network of partner countries:
- The Multilateral Convention, the legal basis of the CRS, on 13 October 2014,
- The Multilateral Competent Authority Agreement, which seeks to facilitate automatic exchanges among the signatories, on 15 December 2015.
On 12 July 2016, Monaco also updated its agreement with the European Union in order to take into account the CRS requirements with the objective of exchanging information with each of the 28 Member States of the European Union (+ Gibraltar). In parallel, Monaco has started negotiations with around 20 countries (partner jurisdictions), including Switzerland, Liechtenstein, Jersey and Guernsey.
From 2018, CFM Indosuez Wealth Management will send information about each reportable account to the Monegasque Department of Tax Services for transfer to the partner jurisdictions.
Foreign Account Tax Compliance Act (FATCA) is a US regulation that seeks to tackle tax evasion by US citizens and residents who hold financial assets outside the US. The Internal Revenue Service (IRS) has implemented a system to collect information from foreign financial institutions every year concerning the assets and income held by US taxpayers outside the US.
Since Monaco has not negotiated the legal framework of application for FATCA with the US, Monegasque financial and banking institutions must adhere to standard FATCA regulation (“Final Regulations”).
CFM Indosuez Wealth Management, as a Foreign Financial Institution (FFI) in the eyes of US law, does everything in its power to adhere to this regulation and satisfy the legal requirements:
- Registration on the IRS portal and signature of a contract with the US tax authorities (“FFI Agreement”). The Global Intermediary Identification Number (GIIN) of CFM Indosuez Wealth Management is: CEQ4EV.00069.ME.492,
- Identification of accounts held directly or indirectly by “Specified US Persons”
- Application of a punitive levy of 30% on certain payments from US sources to recalcitrant clients or financial intermediaries that avoid complying with the FATCA rules (“Non-Participating FFIs”),
- Drafting of an annual report for the US tax authorities containing account balances, income (dividends, interest, other) and gross amounts of disposals, and implementation of an internal audit programme to verify compliance.
This Code of Conduct puts into practice the commitments of the Code of Ethics, that is common to the entire Crédit Agricole Group, which is the foundation of ethical and professional conduct to be adopted.
As an investment services provider, CFM Indosuez Wealth is potentially exposed to conflict of interest situations. Therefore, our firm identifies and implements appropriate measures to avoid such situations in strict compliance with Monegasque professional secrecy, in particular by effectively setting up barriers to information or monitoring employee transactions. When such conflicts cannot be avoided, the Compliance Department ensures that clients are treated fairly and transparently. Thus, CFM Indosuez Wealth has rules and procedures for identifying, preventing and managing conflicts of interest as well as a system for detecting transactions that may constitute market abuse and contravene the rules of transparency and integrity of international capital markets.