Financial Crime World

French Polynesia Banking Regulations Compliance Under Scrutiny

The European Commission has introduced new measures to strengthen banking regulations compliance in French Polynesia by authorizing agreements with third countries and territories outside the European Union. This move aims to facilitate transfers of funds between these entities and Member States while ensuring compliance with EU regulations.

Background

According to Article 355 TFEU, the Commission may authorize Member States to conclude agreements with countries or territories that share a monetary union, form part of the currency area, or have signed a monetary convention with the Union. The agreement must ensure that payment service providers under the jurisdiction of the country or territory concerned apply the same rules as those established under EU regulations.

Request Process

Member States wishing to conclude such an agreement must submit a request to the Commission, providing all necessary information for appraisal. Upon receipt of the request, transfers of funds between the Member State and the country or territory concerned will be provisionally treated as transfers within the Member State until a decision is reached.

  • The Commission will review the request within two months, requesting additional information if necessary.
  • Within one month of receiving the necessary information, the Commission will notify the requesting Member State and transmit copies to other Member States.
  • Within three months of notification, the Commission must decide whether to authorize the agreement, taking into account Article 23(2).

Decision-Making Process

The decision will be made within 18 months of receipt of the request. The Commission’s decisions will be crucial in ensuring that French Polynesian payment service providers comply with EU regulations, thereby maintaining financial stability and integrity within the region.

  • Member States authorized to conclude agreements with countries or territories under previous Commission decisions must provide updated information by March 26, 2017.
  • The Commission will examine this information to ensure that the country or territory concerned requires payment service providers under its jurisdiction to apply the same rules as those established under EU regulations. If necessary, the Commission may repeal the relevant decision if the condition is no longer met.

Conclusion

This move aims to strengthen banking regulations compliance in French Polynesia and ensure a smooth flow of funds between the country and Member States. The Commission’s decisions will play a crucial role in maintaining financial stability and integrity within the region, ensuring that French Polynesian payment service providers comply with EU regulations.