EU Expands Financial Transparency

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The European Union has formally confirmed the entry into force of updated protocols to its agreements on the automatic exchange of financial account information with Andorra and Monaco. According to notices published in the EU Official Gazette on 17 December 2025, the protocols will take effect from 1 January 2026. They amend existing agreements on automatic exchange of information under the OECD’s Common Reporting Standard.

The protocols were signed on 13 October 2025 and update earlier agreements concluded with Andorra in February 2016 and with Monaco in July 2016. Their adoption reflects the EU’s continued efforts to strengthen tax transparency and align reporting standards across jurisdictions.

CRS framework and EU policy goals

The Common Reporting Standard is a cornerstone of international cooperation against tax evasion, requiring financial institutions to collect and report information on accounts held by non-residents. This data is then automatically exchanged between participating jurisdictions, enabling tax authorities to better monitor cross-border assets.

For the European Union, updating CRS agreements with Andorra and Monaco is particularly significant. Both jurisdictions have historically been associated with high levels of financial confidentiality. The new protocols further reduce opportunities for opaque asset holding outside the EU’s regulatory reach.

Implications for account holders

From 2026 onwards, financial institutions in Andorra and Monaco will be required to comply with enhanced reporting obligations under the revised protocols. This will expand the scope and consistency of information exchanged, increasing the likelihood that foreign-held accounts are fully visible to the tax authorities of an individual’s country of tax residence.

For individuals and businesses, the changes underline the importance of tax compliance and accurate disclosure of overseas financial assets, particularly in an environment of intensifying global transparency.

A narrowing space for secrecy

The EU’s decision highlights a broader policy trend towards harmonised financial transparency, extending even to smaller but influential European financial centres. By implementing the updated CRS protocols, Andorra and Monaco are further integrating into the international tax transparency framework.

As reported by International Investment experts, the entry into force of the revised AEOI-CRS protocols signals a continued tightening of global reporting standards. For investors and high-net-worth individuals, it reinforces the need to adapt asset structures and tax planning strategies to a landscape where financial secrecy is increasingly limited.