Banking Overview
Monaco is a significant private banking center, particularly for European and Middle Eastern wealth. The sector caters primarily to high-net-worth individuals, with most banks focusing on wealth management rather than retail banking.
Key Characteristics
- Private banking focus: Minimum balances typically €500,000+ (~$540,000 USD)
- French banking ties: Major French banks operate Monaco subsidiaries
- Euro currency: All accounts in euros
- Regulation: Supervised by CCAF (Commission de Contrôle des Activités Financières)
- Discretion: Culture of privacy (but not from US authorities)
Opening an Account as American
Challenges
- FATCA compliance costs: Some banks prefer not to deal with US clients
- High minimums: €500,000-1,000,000+ (~$540,000-1,080,000 USD) typical entry point
- Enhanced due diligence: Extensive documentation required
- Selectivity: Banks choose clients, not vice versa
Banks That Accept Americans
Major international banks with US operations (BNP Paribas, HSBC, Barclays) are generally more equipped to handle US compliance. Swiss banks (UBS, Julius Baer) have post-FATCA experience with US clients.
Required Documentation
- Valid US passport
- Proof of Monaco address (or intended residence)
- W-9 form (US tax identification)
- Social Security Number
- Source of funds documentation (extensive)
- Tax returns and financial statements
- Professional references
- Bank references from existing relationships
FATCA Reporting
Monaco has a FATCA agreement with the United States. Monaco banks automatically report:
- Account holder identity and US TIN
- Account balances
- Interest, dividends, and other income
- Gross proceeds from sales
Your Reporting Obligations
- FBAR (FinCEN 114): If aggregate foreign accounts exceed $10,000
- Form 8938: If foreign assets exceed thresholds
- Schedule B: Check foreign account box on tax return
Penalties for Non-Compliance
FBAR violations: Up to $100,000 or 50% of account balance per violation (willful).
Form 8938: Up to $50,000 per violation.
Do NOT attempt to hide Monaco accounts from the IRS.
Private Banking Services
Monaco private banks offer comprehensive wealth management:
Investment Services
- Discretionary portfolio management
- Advisory mandates
- Access to alternative investments
- Multi-currency portfolios
- Structured products
Additional Services
- Real estate financing
- Art and collectibles advisory
- Yacht and aircraft financing
- Trust and estate coordination
- Family office services
- Tax planning coordination
Fee Structure
| Service |
Typical Fee |
| Custody |
0.1-0.3% annually |
| Advisory |
0.5-1.0% annually |
| Discretionary management |
1.0-1.5% annually |
| Transactions |
0.2-1.0% per trade |
Investment Limitations for Americans
US securities laws limit what Americans can invest in through foreign accounts:
- PFIC rules: Non-US mutual funds face punitive US tax treatment
- Limited to US funds: Generally restricted to US-domiciled investments
- No European UCITS: These trigger PFIC reporting nightmares
- Reporting burden: Each PFIC requires Form 8621
Practical Solution
Most Americans keep investments in US brokerage accounts and use Monaco accounts primarily for cash management, real estate transactions, and lifestyle expenses in Europe.
Multi-Bank Strategy: Many Monaco residents maintain accounts at multiple banks—one for residency/local needs, others for specific services or diversification. Competition among banks for ultra-HNW clients creates service advantages.
Getting Bank Attestation for Residency
For your residency application, you'll need a bank attestation letter confirming:
- Account is open and in good standing
- Funds deposited (typically €500,000+ mentioned)
- Relationship description
- Bank's willingness to maintain the relationship
Open the account and deposit funds before applying for residency. The bank relationship is a prerequisite.
Disclaimer: Banking regulations and requirements change. This is educational information only. Work with qualified Monaco bankers and US tax professionals. Information current as of January 2026.