French Polynesia Steps Up Customer Due Diligence Requirements in Bid for Financial Transparency
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The French Southern Territories, comprising New Caledonia, French Polynesia, and Saint Pierre and Miquelon, are taking a proactive approach to enhance anti-money laundering (AML) compliance regulations. This move aims to strengthen financial transparency and reduce the risk of illicit activities.
Enhanced Customer Due Diligence Requirements
New Caledonia has implemented enhanced customer due diligence (CDD) requirements for financial institutions and designated non-financial businesses and professions (DNFBPs). These entities must:
- Verify client identities through government-issued documents
- Conduct ongoing monitoring and reporting of suspicious transactions
- Adhere to new guidelines on beneficial ownership
Central Registry for Beneficiary Owners
French Polynesia has introduced a central registry for beneficiary owners of legal entities and trusts. Financial institutions and DNFBPs are now required to comply with:
- Updated FATF recommendations on AML/CFT
- The travel rule
New Penalties for Non-Compliance
Saint Pierre and Miquelon has established new penalties for non-compliance with AML/CFT regulations. Additionally, it has implemented:
- Enhanced know-your-customer procedures
- Improved reporting mechanisms
Regional Anti-Money Laundering Agency and Financial Intelligence Unit
The French Southern Territories have established a regional anti-money laundering agency and financial intelligence unit. These organizations collaborate to:
- Monitor financial transactions
- Analyze financial intelligence
- Disseminate reports to relevant authorities
Global Impact
These updates come at a crucial time as the global focus on implementing tougher AML measures continues to grow. The FATF’s evaluation process puts pressure on territories and countries to meet the necessary requirements in order to maintain financial transparency and reduce the risk of illicit activities.
Maintaining Financial Integrity
The continued efforts by the French Southern Territories to strengthen their AML compliance regimes contribute to maintaining the integrity of local financial sectors and further strengthens the global campaign against money laundering and terrorist financing.