FRENCH POLYNESIA: Banking Regulations Crack Down on Financial Crime
The fight against financial crime has taken a significant step forward in French Polynesia, as new banking regulations come into force to prevent money laundering and terrorist financing.
Background
The regulations, first introduced by the European Union in 1990, have undergone several revisions over the years to stay ahead of evolving threats. The latest amendments, adopted in 2018, require banks and other financial institutions to apply customer due diligence requirements when entering into a business relationship with clients.
Regulations in French Polynesia
In French Polynesia, insurance companies are also subject to these regulations, which include:
- Vigilance obligation: A requirement for financial institutions to be aware of potential money laundering and terrorist financing risks.
- Obligation to inform or report suspicious transactions: Institutions must notify the relevant authorities of any suspicious transactions.
- Anti-money laundering measures: Financial institutions must implement measures to prevent money laundering and terrorist financing.
The rules aim to prevent the misuse of financial systems for criminal purposes, such as money laundering and terrorist financing.
Requirements for Banks and Financial Institutions
Under the new regulations, banks and other financial institutions in French Polynesia are required to:
- Identify and verify client identity: Institutions must identify and verify the identity of their clients.
- Monitor transactions for suspicious activity: Institutions must monitor transactions for any suspicious activity.
- Report suspected cases: Institutions must report any suspected cases of money laundering or terrorist financing to the relevant authorities.
Adaptation to Local Context
The regulations have been adapted to take into account the specific context of French Polynesia, which has its own political and judicial institutions distinct from those in France.
“We are committed to ensuring that our financial system is robust and secure against criminal activity,” said a senior official at the Ministry of Economy. “These new regulations will help us to better detect and prevent money laundering and terrorist financing, and ensure that our financial sector remains trustworthy and reputable.”
Conclusion
The introduction of these new regulations marks an important step forward in French Polynesia’s efforts to combat financial crime and maintain a safe and secure financial environment for its citizens.