France Makes Strides in Combating Money Laundering and Terrorist Financing

Paris - France has demonstrated a good understanding of the risks associated with money laundering (ML) and terrorist financing (TF), according to a report released by the Financial Action Task Force (FATF).

Risk Assessment and Policy Setting

The report, which assessed France’s risk assessment, coordination, and policy setting in combating ML/TF, found that the country’s national risk assessment (NRA) and sectoral risk analyses (SRA) have provided a solid foundation for understanding the risks. However, some supervisory authorities responsible for non-financial businesses and professions (DNFBPs) need to further develop their risk assessments.

Supervision and Investigations

The report noted that the allocation of resources dedicated to ML investigations in local and OM investigation services, as well as judicial investigations, remains necessary to effectively conduct ML investigations. France’s national policies are mainly implemented through thematic action plans, with a particular focus on combating CFT issues. The country has achieved compelling results, but law enforcement policies and activities need to better reflect the identified risks.

Cooperation and Coordination

The report praised France’s cooperation and coordination between authorities at the national level, as well as its bilateral cooperation. However, it noted that there is still room for improvement in the cooperation between authorities responsible for supervising the same DNFBP sector.

Financial Intelligence

Financial intelligence plays a key role in investigating ML cases, and France regularly uses financial intelligence to investigate ML cases and trace the proceeds of crime. The country’s Financial Intelligence Unit (FIU), TRACFIN, has access to various sources of information and makes extensive use of its right to obtain information from regulated entities and other competent national authorities.

Investigations and Prosecutions

In terms of ML investigations and prosecutions, France is very active in investigating complex and highly complex cases. However, the number of ML cases related to corruption and human trafficking is low. The investigative and prosecution authorities have adequate financial and technical resources to identify and investigate ML cases. However, despite an increase in staff, the lack of specialized investigators remains a limitation for the system and impacts on investigation timeframes, especially in complex and highly complex cases.

Conclusion

Overall, France has made significant progress in combating ML/TF, but there are still areas that require improvement. The country’s authorities must continue to work together to address these challenges and ensure that their efforts are effective in preventing and disrupting ML/TF activities.

Key Points:

• France has a solid foundation for understanding the risks associated with ML/TF
• Supervisory authorities responsible for DNFBPs need to further develop their risk assessments
• Allocation of resources dedicated to ML investigations is necessary
• Cooperation between authorities at the national level and bilaterally needs improvement
• Financial intelligence plays a key role in investigating ML cases
• Investigations and prosecutions are active, but there is a lack of specialized investigators
• France must continue to work together to address challenges in combating ML/TF