AMF Updates Anti-Money Laundering and Combating Terrorist Financing Policies and Procedures
The French Financial Markets Authority (AMF) has updated its General Regulation and guidelines on anti-money laundering and combating terrorist financing (AML-CFT) to reflect legislative and regulatory changes resulting from the transposition of the fifth anti-money-laundering directive.
Scope of Application Expanded
The scope of application for AML-CFT obligations in the AMF General Regulation has been expanded to include:
- Managers of “other alternative investment funds” (AIFs)
- European Venture Capital Funds
- European Social Entrepreneurship Funds
- Branches established in France by European management companies managing French UCITS or AIFs
Additionally, financial investment advisers and crowdfunding investment advisers are exempt from submitting reports on their internal control systems.
Updated Guidelines
The updated guidelines include:
Position-Recommendation DOC-2019-15: Guidance on the risk-based approach to combating money laundering and terrorist financing
- Takes into account legislative changes that require obliged entities to consult the register of beneficial owners of client companies listed on the Trade and Companies Register, unless there is a low risk
- Eliminates additional customer due diligence measures in remote business relationships
- Provides recommendations for assessing the level of equivalence of AML-CFT obligations of third countries
Position-Recommendation DOC-2019-16: Guidelines on due diligence obligations with respect to clients and their beneficial owners
- Includes guidance on the register of beneficial owners of client companies listed on the Trade and Companies Register
- Provides recommendations for assessing the level of equivalence of AML-CFT obligations of third countries
Position DOC-2019-17: Guidelines on the concept of politically exposed persons
- Defines the concept of Politically Exposed Persons (PEPs) and their implications in AML-CFT
Position DOC-2019-18: Guidelines on the obligation to report to TRACFIN
- Clarifies the reporting obligations to TRACFIN, including the requirement to report suspicious transactions and activities
Adjustments Made
The AMF has also adjusted its position regarding due diligence by collective investment management companies with respect to tenants of buildings acquired by real estate funds they manage.
Enhancing France’s Efforts Against Money Laundering and Terrorist Financing
These updates are intended to enhance France’s efforts against money laundering and terrorist financing, aligning with international standards and best practices.