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France Makes Progress in Combating Money Laundering and Terrorist Financing
Paris, France - The International Monetary Fund (IMF) has released a report assessing France’s progress in combating money laundering and terrorist financing. According to the report, France has made significant strides in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) framework.
Key Reforms Implemented
The report notes that France’s AML/CFT framework was found to be generally satisfactory in its last assessment by the Financial Action Task Force (FATF), although some important deficiencies were identified. Since then, France has implemented several key reforms aimed at strengthening its AML/CFT regime.
- Risk-Based Preventive Measures: The introduction of risk-based preventive measures for financial institutions and designated non-financial businesses and professions requires institutions to identify and assess their money laundering and terrorist financing risks, and apply enhanced controls when those risks are higher.
- Increased Transparency in Beneficial Ownership: France has established a central register of beneficial owners, which requires legal persons to identify and submit information on their beneficial owners. The register is accessible to AML/CFT obliged professionals, regulatory authorities, and other competent authorities.
Ongoing Efforts
France has also begun transposing the Fifth European Anti-Money Laundering Directive (AMLD), including measures aimed at strengthening its national register of fiducies (a civil arrangement akin to trusts). The country is working on developing a mechanism to identify discrepancies between information maintained in the register and that in the possession of other authorities.
Focus on Terrorist Financing
The report notes that France’s efforts have been focused on addressing the risks posed by terrorist financing, which are considered high. Preliminary findings suggest that these activities are often facilitated using microfinance, associations, networks of funds collectors, non-bank payment service providers, and electronic money.
Quote from an IMF Spokesperson
“We welcome France’s commitment to strengthening its AML/CFT framework,” said an IMF spokesperson. “The country’s efforts demonstrate a strong commitment to preventing the misuse of its financial system for illicit purposes.”
About the International Monetary Fund
The International Monetary Fund (IMF) is an international organization that aims to promote global economic stability and prosperity by promoting international monetary cooperation, exchange rate stability, and reducing poverty. The IMF provides policy advice and financing to its 189 member countries.