Financial Crime Prevention in French Southern Territories: Key Players and Unresolved Risks
Financial Crime Risks in French Overseas Territories Exposed by FATF Report
A recent evaluation report by the Financial Action Task Force (FATF) has highlighted the challenges faced by France in preventing financial crimes related to drug trafficking in its overseas territories. Despite making significant progress in combating money laundering and terrorist financing, critical gaps remain in controlling profits from illicit trade in these regions.
Key Players in Financial Crime Prevention
Several key players have emerged as crucial in the fight against financial crime in France:
Central Office for the Fight Against Corruption and Financial and Tax Offences (OCLCIFF)
- Instrumental in combating corruption and tax evasion
- Plays a vital role in promoting transparency and accountability
French Anticorruption Agency (AFA)
- Promotes transparency and accountability in financial matters
- Works to prevent and detect corruption
National Financial Prosecutor’s Office (PNF)
- Streamlines handling of court cases related to financial crime
- Develops cross-border cooperation with international authorities
- Recovered over €10 billion for the public purse since 2014
TRACFIN - Financial Crime Intelligence Service
- Contributes to adoption of EU Directive on access to financial information for law enforcement
- Plays a vital role in AML/CFT system
Unresolved Risks and Challenges
Despite efforts, FATF identified several unresolved risks related to drug trafficking in French overseas territories:
Vulnerability to Cocaine Trafficking
- Maritime access to Mediterranean and Atlantic via EU and overseas borders makes France vulnerable
- Proceeds from crimes like theft, fraud, and misuse of corporate funds are often transferred to bank accounts in the sub-region
Insufficient Supervision in Non-Financial Sector
- Real estate agents and notaries involved in real estate sector lack sufficient supervision
- Industry prone to illicit financial activities
Recommendations for Addressing Challenges
To address these challenges, FATF recommended:
- Increasing number of money laundering technical specialists across all competent authorities
- Developing a specific strategy to tackle drug trafficking in French overseas territories
- Improving cooperation with international partners
As one insider source noted, “Maintaining ongoing vigilance is essential to adapt and update our risk assessment as criminal practices evolve rapidly.”