Anti-Money Laundering (AML) Regulations in France

Introduction

France has implemented various measures to combat money laundering and the financing of terrorism, as part of its efforts to comply with international standards and recommendations. This article provides an overview of the key aspects of AML laws and regulations in France.

Payment Transparency Requirements

Accurate Information on Payer and Beneficiary

For funds transfers, accurate information on the payer and beneficiary (including their names and payment account numbers) must be included in the payment order when the payment service provider is not established in France. However, if the service provider is established in France, only the payment account numbers of the ordering party and beneficiary need to be indicated.

Ownership of Legal Entities

Permitted Use of Bearer Shares

Bearer shares are permitted for listed companies on the stock exchange, but other forms of ownership are not specified as being prohibited.

Anti-Money Laundering Requirements for Non-Financial Institution Businesses

Real Estate and Regulated Professions

Real estate and regulated professions (such as lawyers and notaries) are subject to anti-money laundering requirements, including currency reporting.

International Profiles

Higher Risk of Committing Money Laundering Offences

International profiles present a higher risk of committing money laundering offences and are therefore subject to greater vigilance.

Government Initiatives for Modernizing the AML Regime

Improvements under Discussion at European Level

Improvements to the anti-money laundering system are under ongoing discussion at European level, with proposals including standardizing European supervision, giving more powers to financial intelligence units (TRACFIN in France), and harmonizing content and access to registers of beneficial owners.

Compliance with FATF Recommendations

Evaluation Results

The effectiveness of measures to combat money laundering and the financing of terrorism was evaluated in 2022. While France has achieved good results in areas such as criminal prosecution, confiscation, and international cooperation, it needs to improve oversight of certain sectors, including legal entities and real estate.

Evaluation by Outside Organizations

FATF Evaluation Results

The FATF last evaluated France in May 2022, highlighting both the country’s progress and areas for improvement.

Accessing AML Laws and Regulations

Relevant Materials Available on the Internet

Relevant laws, regulations, administrative decrees, and guidance can be accessed on the Internet, including reports from the FMFC, TRACFIN, and FATF. While not all materials are available in English, they can easily be translated.

Conclusion

This summary provides a clear overview of France’s anti-money laundering regime as it stands currently, highlighting key aspects such as payment transparency requirements, ownership of legal entities, and compliance with FATF recommendations.