Whistleblower protection and reporting channels in Monaco

There is currently no unified law on whistleblowing in Monaco although Bill n°987 – related to the protection of whistleblowers in the context of labour relations, which is currently pending –  will implement such legislation pursuant to Recommendation CM/Rec(2014)7 adopted by the Committee of Ministers of the Council of Europe on 30 April 2014 as well as the applicable case law from the European Court of Human Rights.

For now, whistleblowing rules are rare and scattered among several laws.

Private entities named by Law n°1.362 of 3 August 2009 on money laundering, terrorist financing, and corruption, recently modified by Law n°1.521 of 11 February 2022, are required to establish a whistleblowing system related to this law. These entities include financial institutions, multi-family offices, real estate agents, and many others. Please see our publication related to Anti-Money Laundering Law & Whistleblower for more information.

Likewise, private employers must, pursuant to Law n°1.457 of 12 December 2017, establish a whistleblowing system related to harassment and violence in the workplace in order to investigate and act upon any report of such behavior. 

Law n°1,362 of 3 August 2009 expressly provides for administrative sanctions, ranging from a warning to the withdrawal of the authorization to practice, and financial sanctions, capped at the highest of ten million euros or ten per cent of the total annual turnover (which may be calculated as that resulting from the consolidated accounts of the parent company).

An employer that fails to comply with its obligations regarding harassment and violence in the workplace might have to pay damages to the victim in addition to possible administrative and financial sanctions for failure to implement the mandatory requirements provided by Law n°1,457.

There are no mandatory requirements under the Monegasque Labour Code to establish a whistleblowing system. However, this is mandated by other laws in some cases (see answer to question 2 above).

Yes, private entities targeted by the abovementioned Law n°1,362 must have procedures allowing their employees and directors to report breaches of anti-money laundering rules to a designated person, to the direct superior, or to the employer itself, as well as to public authorities if need be.

For harassment and violence in the workplace, employers with more than 10 employees must designate a referent responsible for accepting reports of such conduct and informing the employer so that it can act accordingly.

Employees must be informed of the internal (and possibly external) reporting system including the person designated within the private entity to receive reports of the deficiencies or breaches of Law n°1,362 and/or Law n°1.457.

Generally, Articles 307 et seq. of the Monegasque Criminal Code provide for the offences of false accusation and disclosing secret information. These may, in principle, be applied to an employee disclosing irregularities or misconduct externally. However, it should be noted that freedom of speech is guaranteed by the Monegasque Constitution as well as the European Convention on Human Rights to which Monaco is party. Accordingly, freedom of speech may override the prohibition of external or public disclosure under certain conditions.

That being said, anti-money laundering rules expressly provide for the possibility of an external report to public authorities (e.g., the Public Prosecutor) in case of failure of the internal report mentioned in Question 5 above. This possibility is not expressly foreseen regarding harassment or violence at the workplace (although it is of course possible to file a criminal complaint) and neither of these laws mention public disclosure.

It should be noted that the abovementioned Bill n°987 provides for the possibility of public disclosure subject to criteria reminiscent of European case law and the European Directive (EU) 2019/1937 on the protection of persons who report breaches of Union law.

There is no general legal protection of whistleblowers although Bill n°987 will provide this.

Yet, both Law n°1,362 and Law n°1,457 grant protective status to the whistleblower only within the framework of these laws. Accordingly, an employee cannot, in principle, be sanctioned by its employer for a legitimate report on an alleged irregularity or misconduct.

Legal entities established within Monaco must comply with the requirements of Law n°1,165 of 23 December 1993 related to the protection of personal data. Monegasque employers can also be subject to the General Data Protection Regulation (GDPR) in some instances.

Further, Law n°1,362 of 3 August 2009 on money laundering mandates that the reporting procedures (whether internal or external) guarantee the confidentiality of the whistleblowers, of the alleged perpetrators, and of the information gathered.

Entities in different jurisdictions are not prohibited from establishing a joint whistleblowing system. On the contrary, this is specifically envisaged by Law n°1,362 on money laundering. Such a system must comply with the requirements of this Law along with personal data protection rules.