Financial Crime World

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Suspicious Transaction Reporting Guidelines from the French Autorité des Marchés Financiers (AMF)

The Autorité des Marchés Financiers (AMF) provides guidelines on suspicious transaction reporting to ensure that obliged entities comply with regulations. Here’s a breakdown of the key points.

Valid Reports

To justify filing a suspicious transaction report, the following conditions must be met:

  • Reports cannot be based solely on assumptions, client behavior, or difficulties between the obliged entity and its client.
  • The report must include concrete evidence and analysis leading to the suspicion.

Content Requirements for Reports

According to Article R. 561-31 III of the Monetary and Financial Code, a suspicious transaction report must include:

  • Profession practiced by the person filing the report
  • Identity details of the designated reporting person
  • Reporting case (e.g., money laundering, terrorist financing)
  • Client identity and beneficial owner details (if applicable)
  • Purpose and nature of the business relationship (if applicable)
  • Description of the transaction and analysis leading to the report

Additional Requirements

Reports must also meet the following requirements:

  • Relevant documentation: Reports must be accompanied by any relevant documentation.
  • Rectification instructions: TRACFIN may instruct obliged entities to rectify incomplete or inaccurate reports.

Good Faith Requirement

The AMF emphasizes that suspicious transaction reports must be submitted in good faith, which means that suspicions must be substantiated, documented, and based on reliable data.

Examples of Information to Include in a Report

When submitting a suspicious transaction report, the following information should be included:

  • Background information about the client: Identity details, purpose of the business relationship
  • Description of events leading to suspicion
  • In-depth analysis carried out by the obliged entity
  • Supporting evidence (documents and other relevant materials)

By adhering to these guidelines, obliged entities can ensure that their suspicious transaction reports are thorough, accurate, and submitted in good faith.