Financial Crime World

Best Practices for AML/CFT in French Polynesian Banks

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The Autorité des Marchés Financiers (AMF) has updated its General Regulation and guides on combating money laundering and terrorist financing (BCF/FT). This update aims to take into account the impacts of legislative and regulatory changes related to the transposition of the Fifth Anti-Money Laundering Directive (UE) 2018/843 of the European Parliament and Council, as well as several adjustments.

Update to the General Regulation

The General Regulation has been updated to take into account the legislative and regulatory changes related to the transposition of the Fifth Anti-Money Laundering Directive. The AMF has extended the scope of application of the AML/CFT obligations set out in its General Regulation, in accordance with Article L. 561-2 6° of the Monetary and Financial Code.

Updated Guides

The following policy documents have been impacted:

  • Position-Recommendation DOC-2019-15: Guide on risk-based approach for combating money laundering and terrorist financing;
  • Position-Recommendation DOC-2019-16: Guides on the required due diligence obligations towards clients and their beneficial owners;
  • Position DOC-2019-17: Guides on the notion of politically exposed persons (PEPs);
  • Position DOC-2019-18: Guides on the obligation to report to TRACFIN.

Key Points to Take into Account

In addition to adjustments to the scope of application, the guides take into account legislative and regulatory changes that require entities subject to obligations to consult the register of beneficial owners of client companies registered with the Trade and Companies Register, unless the risk is considered low. The guides also take into account regulatory adjustments for entities subject to obligations that use third-party services to implement their due diligence before opening a commercial relationship or those intended to strengthen additional diligence measures when dealing with high-risk countries.

Recommendation by AMF

The AMF recommends that entities subject to obligations anticipate in their internal procedures a methodology for evaluating the level of equivalence of AML/CFT obligations in third-party countries. To evaluate this level of equivalence, the AMF recommends that entities consult not only the lists established by the Financial Action Task Force (FATF), but also the mutual evaluation reports published by the FATF.

Final Adjustment

The AMF has adjusted its position regarding the due diligence required by collective investment management companies with regard to tenants of real estate properties acquired by funds they manage.

By implementing these best practices, French Polynesian banks can ensure compliance with AML/CFT regulations and mitigate risks associated with money laundering and terrorist financing.