New Caledonia Adapts Anti-Money Laundering Regulations to EU Standards

The European Union’s anti-money laundering (AML) regulations have been adopted in New Caledonia, a French overseas territory. The regulations aim to prevent the misuse of the financial system for money laundering and terrorist financing.

History of AML Regulations

In 1990, the EU adopted its first AML directive, which requires obligated entities, including insurance companies, to apply customer due diligence requirements when entering into business relationships. This includes:

Identifying and verifying the identity of clients
Monitoring transactions
Reporting suspicious transactions

Evolution of AML Regulations

The EU has since revised its AML regulations several times to mitigate risks related to money laundering and terrorist financing. The 5th AML Directive, adopted in 2018, introduced new measures to enhance transparency, limit anonymity, and improve cooperation between authorities.

Regulations in New Caledonia

In New Caledonia, insurance companies are subject to AML regulations, including:

Vigilance Obligation: Insurance companies must exercise particular care when entering into business relationships or assisting clients in preparing or executing transactions.
Reporting Requirements: Insurance companies must report to the authorities any sums or transactions that they know, suspect, or have good reason to believe originate from an offence punishable by a custodial sentence of more than one year or are linked to terrorist financing.
Asset Freezing Measures: Authorities can freeze assets suspected of being related to money laundering or terrorist financing.

Adaptation to Local Law and Institutions

New Caledonia has adapted the EU’s AML regulations to its local law references and institution names, reflecting the territory’s unique political and judicial institutions. The adoption of these regulations demonstrates New Caledonia’s commitment to combating money laundering and terrorist financing in line with international standards.