Financial Crime World

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Money Laundering Prevention in French Southern Territories: New Guidelines Published

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In a bid to combat money laundering and terrorism financing, the Financial Authority of French Southern Territories has published new guidelines aimed at preventing these illegal activities. The guidelines are part of the authority’s efforts to enhance its supervisory priorities in 2019.

Enhanced Supervisory Priorities

The French Southern Territories’ Financial Authority (AMF) has recast its anti-money laundering and combating the financing of terrorism (AML/CFT) policy, which includes four new guidelines on:

  • Risk-based approach
  • Obligations of vigilance towards clients and their beneficiaries
  • Politically exposed persons
  • Reporting suspicions to TRACFIN

These guidelines replace outdated recommendations and are designed to assist professionals under AMF supervision in preparing and implementing their AML/CFT prevention systems. The guidelines are aligned with national regulations transposing the fourth EU Anti-Money Laundering Directive.

Key Requirements

According to the guidelines, financial institutions must:

  • Adopt a risk-based approach to AML/CFT
  • Conduct due diligence on clients, fund assets, and third-party introducers
  • Report any suspicious transactions to TRACFIN

The guidelines also cover the concept of politically exposed persons and provide recommendations for integrating joint guidelines from European supervisory authorities on simplified and enhanced customer due diligence.

Sectoral Developments

The new guidelines include sectoral developments specific to:

  • Individual portfolio management
  • Financial investment advice
  • Investment funds

These are crucial in identifying money laundering and terrorism financing risks associated with individual business relationships and occasional transactions.

Strengthening the Fight Against Money Laundering and Terrorism Financing

The AMF’s efforts aim to strengthen the fight against money laundering and terrorism financing in the French Southern Territories, ensuring a safer financial environment for residents and businesses.