French Southern Territories: Banks Tighten AML Procedures

Strengthening Anti-Money Laundering Regulations

The Autorité des Marchés Financiers (AMF), France’s financial markets regulator, has recently updated its General Regulation and guidelines on anti-money laundering (AML) and combating terrorist financing (CFT). This move is aimed at enhancing the fight against money laundering and terrorism in French overseas territories.

Key Developments

• The updates take into account recent legislative and regulatory changes, including the transposition of the fifth AML Directive.
• The scope of application of AML-CFT obligations has been extended to include:
  • Managers of “Other Alternative Investment Funds” (AIFs)
  • European Venture Capital Fund (EuVECA) managers
  • European Social Entrepreneurship Fund (EuSEF) managers
  • Branches established in France by European management companies managing French Undertakings for Collective Investment in Transferable Securities (UCITS) or AIFs

Regulatory Adjustments

• Obliged entities must consult the register of beneficial owners of client companies listed on the Trade and Companies Register, except if there is a low risk.
• Additional customer due diligence measures have been eliminated in the event of remote entry into a business relationship.

Enhanced Due Diligence Measures

The AMF has also adjusted its position regarding due diligence by collective investment management companies with respect to tenants of buildings acquired by the real estate funds that they manage.

Key Takeaways

• The updated guidelines aim to strengthen the fight against money laundering and terrorism in French overseas territories.
• The regulatory adjustments are expected to improve the effectiveness of AML-CFT measures in the region.