Financial Crime World

Title: FATF Report: France’s AML/CTF Measures Strengthened, Yet Challenges Remain

Paris - May 2022

The Financial Action Task Force (FATF), an international organization combating money laundering (ML), terrorist financing (TF), and proliferation financing, has recently released a report evaluating France’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures. Despite significant progress, challenges persist.

FATF Report: Key Findings

  • Understanding of ML/TF Risks: France has a good understanding of ML/TF risks, but awareness lags behind among some designated non-financial businesses and professions (DNFBPs) supervisory authorities.
  • Use of Financial Intelligence: Competent authorities effectively use financial intelligence, with TRACFIN playing a crucial role.
  • Prosecution of ML Cases: Prioritization of prosecution of high-end ML cases has led to numerous investigations, prosecutions, and convictions.
  • Confiscation: Confiscation is a priority, with impressive results since 2010.
  • Terrorist Financing: France is highly effective in combating TF, with effective collaboration between law enforcement, prosecution, and intelligence authorities.

Positive Outcomes and Challenges

Some notable achievements include impressive confiscation results since 2010 and effective collaboration against TF. However, challenges include a broad approach to NPO identification and the need to improve supervision and implement preventive measures.

Not-for-Profit Organizations (NPOs)

An overly broad approach to identifying NPOs vulnerable to TF has led to targeted measures applied to humanitarian NPOs receiving government grants.

Financial Institutions (FIs) and Virtual Asset Service Providers (VASPs)

The risk understanding for ML/TF varies depending on the maturity of the sector, especially for FIs and VASPs.

Impact on the Global AML/CTF Landscape

The FATF report arrives at a crucial moment, as countries confront increasingly intricate ML/TF challenges. The full report, along with resources on other jurisdictions and FATF news, can be accessed on FATF’s website.

FATF’s Role

As the global standard-setter, the FATF’s ongoing evaluations and recommendations contribute significantly to strengthening international efforts against financial crimes.

For More Information

For more details about the FATF, visit their website (www.fatf-gafi.org). Please note that this article is for informational purposes only; for specific legal or financial advice, consult the relevant authorities or professionals.