France: A Key Player in the Global Fight Against Money Laundering and Terrorist Financing

France plays a crucial role in combating money laundering and terrorist financing, with a robust framework that has been evaluated by international organizations such as the Financial Action Task Force (FATF). Despite facing challenges in ensuring compliance with anti-money laundering (AML) regulations, France is committed to improving its AML regime.

Prohibition of Financial Institution Accounts for Foreign Shell Banks

France prohibits financial institution accounts for foreign shell banks, which are banks that lack a physical presence in the countries where they operate and have no effective supervision. Credit, payment, and electronic money institutions are subject to this prohibition.

Reporting Suspicious Activity

All financial institutions and designated businesses in France must report suspicious activity if they “know, suspect or have good reason to suspect” that a transaction is related to money laundering or terrorist financing. The reporting threshold is relatively low, at €2,000 for cash transactions and €10,000 for other transactions.

Government Initiatives to Modernize the AML Regime

The French government has announced plans to modernize the AML regime by introducing a risk-based approach, improving supervision, and enhancing cooperation between authorities. The European Union’s Sixth Anti-Money Laundering Directive is also expected to be implemented in France, which will standardize European supervision, give more powers to financial intelligence units, and harmonize content and access to registers of beneficial owners.

FATF Evaluation

France has been evaluated by the FATF on several occasions. The most recent evaluation was conducted in May 2022, which concluded that France has a robust framework for combating money laundering and terrorist financing, but noted some areas where improvement is needed, such as supervision of professionals involved in legal entities and real estate sector.

Access to AML Laws and Regulations

The French Monetary and Financial Code (FMFC) and other relevant AML laws and regulations are publicly available on the Internet. While not all materials are available in English, they can be easily translated using online translation tools.

Conclusion

France is a key player in the global fight against money laundering and terrorist financing, with a robust framework that has been evaluated by international organizations such as the FATF. However, like many countries, France faces challenges in ensuring compliance with AML regulations, particularly in certain sectors. The government’s plans to modernize the AML regime are welcome steps towards improving the effectiveness of these measures.

Contact

For further information on France’s AML regime, please contact [insert name and email of relevant official or organization].

Relevant Resources

• French Monetary and Financial Code (FMFC)
• TRACFIN report
• FATF report