FRANCE’S OVERSEAS TERRITORIES FACE CRITICAL GAP IN COMBATING DRUG-RELATED FINANCIAL CRIME

Despite France’s strong track record in combating financial crime, a recent evaluation by the Financial Action Task Force (FATF) has highlighted critical gaps in its control over profits from illegal trade in its overseas territories.

A Mixed Review from FATF

The FATF report, published on Wednesday, praised France’s “robust and sophisticated framework” for fighting money laundering and terrorist financing. However, it noted that illicit financial dealings related to drug trafficking remain a significant challenge.

Key Findings:

• France’s maritime access to the Mediterranean and Atlantic via EU and overseas borders makes it vulnerable to drug trafficking, particularly of cocaine.
• The proceeds from crimes such as theft, fraud, and misuse of corporate funds are difficult to evaluate due to the transfer of funds to bank accounts in the sub-region, where international cooperation is limited.

Insufficient Supervision of Non-Financial Sector

FATF also noted that France’s supervision of the non-financial sector is insufficient, particularly for real estate agents and notaries involved in the real estate sector.

Recommendations:

• Increase the number of money laundering technical specialists across all competent authorities.
• Implement a specific strategy for its overseas territories to combat illicit financial activities effectively.

Ongoing Vigilance Essential

Experts warn that ongoing vigilance is essential to maintain the effectiveness of these measures in the face of rapidly evolving criminal practices.

Quotes:

• “It is essential to adapt and update our risk assessment as criminal practices evolve,” said Didier Banquy, president of COLB.
• “We must maintain ongoing vigilance to tackle these threats effectively.”

Commitment from French Government

The French government has committed to addressing the critical gaps identified by FATF, including increasing cooperation with international authorities and implementing a specific strategy for its overseas territories.