Due Diligence in Financial Transactions: A Crucial Measure in French Polynesia

In a bid to combat money laundering and terrorist financing, the European Union has implemented a series of directives and regulations aimed at strengthening due diligence requirements in financial transactions. While these regulations apply directly to several French overseas territories, their scope is limited when it comes to overseas countries and territories (OCTs) like French Polynesia.

The Evolution of Anti-Money Laundering Directives

• The first anti-money laundering directive was adopted by the EU in 1990, requiring obliged entities to apply customer due diligence requirements when entering into business relationships.
• This legislation has been revised multiple times to mitigate risks related to money laundering and terrorist financing.

In 2015, the EU introduced a modernized regulatory framework, which includes stricter rules for identifying and verifying the identity of customers. The regulations also require financial institutions to report suspicious transactions and freeze assets linked to criminal activity.

Anti-Money Laundering Regulations in French Polynesia

Insurance companies operating in French Polynesia are subject to similar anti-money laundering regulations as those in other European territories. According to article L.755-13 of the Monetary and Financial Code, insurance companies must implement:

• Vigilance Obligation: Identify and verify the identity of customers, including beneficiaries of life insurance contracts.
• Reporting Obligation: Report suspicious transactions and freeze assets linked to criminal activity.
• Asset Freezing Mechanism: Freeze assets suspected of being linked to money laundering or terrorist financing.

Adapting to Local Regulations

While the regulatory framework for anti-money laundering in French Polynesia mirrors that of other European territories, there are some adaptations required due to local law references and institution names. Nevertheless, insurance companies operating in French Polynesia must adhere to these regulations to ensure compliance with international standards.

Conclusion

Due diligence is a critical measure in the fight against money laundering and terrorist financing in French Polynesia. Insurance companies must implement strict customer identification and verification procedures, report suspicious transactions, and freeze assets linked to criminal activity to comply with anti-money laundering regulations.