Financial Crime World

France’s Anti-Money Laundering (AML) Regime

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Overview of France’s AML Regime

France has implemented a robust anti-money laundering (AML) regime to combat financial crimes and protect its economy. This chapter provides an overview of the key aspects of France’s AML regime, including definitions, laws and regulations, customer due diligence requirements, reporting obligations, and international cooperation.

Definition of Money Laundering

Money laundering is defined in French law as the concealment or disguise of the true origin, nature, destination, or movement of funds derived from a criminal activity.

Key Laws and Regulations

France’s main AML laws and regulations are:

  • Law No. 2017-1117 of July 21, 2017: This law introduced significant changes to France’s AML framework, including the creation of a new authority responsible for overseeing the implementation of AML measures.
  • Decree No. 2018-170 of February 9, 2018: This decree provided further detail on the implementation of the Law No. 2017-1117 and established the requirements for customer due diligence.

Customer Due Diligence Requirements

Customer due diligence (CDD) is a crucial aspect of France’s AML regime. Financial institutions must:

  • Verify customer identity: Obtain accurate information about customers, including their name, address, and date of birth.
  • Assess risk profile: Evaluate the level of risk associated with each customer based on factors such as their business activity, location, and financial history.
  • Maintain records: Keep accurate and up-to-date records of customer transactions and CDD procedures for a minimum period.

Reporting Obligations

Financial institutions must file reports with the TRACFIN (Traitement du Renseignement Financier) unit when suspicious transactions or activities are detected. These reports must include detailed information about the transaction, including:

  • Date and time: The date and time of the transaction.
  • Amount: The amount involved in the transaction.
  • Currency: The currency used for the transaction.
  • Parties involved: The names and addresses of all parties involved in the transaction.

International Cooperation

International cooperation is essential in combating money laundering. France has signed various agreements with other countries to facilitate information exchange and coordination.

Challenges Facing France’s AML Regime

Despite its efforts, France’s AML regime faces several challenges:

  • Supervision of professionals: Effective supervision of professionals involved in legal entities and real estate transactions is essential.
  • Not-for-profit sector: Improving oversight of the not-for-profit sector can help prevent money laundering.
  • Lack of specialized investigators: Addressing the lack of specialized investigators can enhance the effectiveness of AML measures.

Conclusion

This chapter provides a comprehensive overview of France’s anti-money laundering (AML) regime and highlights the importance of effective AML measures in combating financial crimes. By understanding the key aspects of France’s AML regime, including definitions, laws and regulations, customer due diligence requirements, reporting obligations, and international cooperation, we can better appreciate the efforts being made to combat money laundering and terrorist financing.