Financial Crime World

France’s Southern Territories Face Calls to Improve AML/CFT Regulations

Despite progress made by France in implementing anti-money laundering and countering the financing of terrorism (AML/CFT) measures, a recent report has highlighted concerns over the effectiveness of these regulations in its overseas territories.

Challenges Identified

The assessment team found that non-financial professions in France’s overseas territories face significant challenges in implementing their AML/CFT obligations. The lack of professional organisations to guide and assist them in this area was identified as a major difficulty. Furthermore, the absence of government authorities clearly identified for dealing with AML/CFT matters in these territories raises concerns.

Key Findings

  • Non-financial professions in France’s overseas territories face significant challenges in implementing their AML/CFT obligations.
  • The lack of professional organisations to guide and assist them in this area was identified as a major difficulty.
  • There is no government authority clearly identified for dealing with AML/CFT matters in these territories.

Recommendations

To address the concerns, the report recommends that French authorities take several steps:

  • Enhance judicial resources for investigations and law enforcement measures against economic and financial crime.
  • Improve knowledge of money laundering and terrorist financing risks in every region of the country.

Additionally, the report suggests improving suspicious transaction reporting (STR) obligations among covered professions in these regions. The lack of resources devoted by Tracfin to dialogue and exchanges on STR obligations was identified as a major concern.

The assessment team noted that while France has a comprehensive array of legal tools to criminalise terrorist financing, there is a strong tendency among courts to prosecute on charges related to predicate offences rather than money laundering itself.

Conclusion

While France has made significant progress in implementing its AML/CFT regime, there are several areas that require improvement, particularly in the overseas territories. The report concludes that French authorities must take concrete steps to address these concerns and strengthen their AML/CFT regulations.