Financial Crime World

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France’s Anti-Money Laundering Regime

AML Laws and Regulations

The French anti-money laundering (AML) framework is based on EU directives and includes several key laws and regulations. The main authorities responsible for AML compliance are the Financial Intelligence Unit (Tracfin) and the National Commission for Financial Security (CNBF).

  • Key Legislation:
    • Monetary and Financial Code (Code Monétaire et Financier - CMF)
    • Law No. 2017-55 of January 20, 2017
    • Ordinance No. 2016-1635 of December 1, 2016

Beneficial Ownership

Companies in France are required to maintain a register of beneficial owners, which is accessible to government authorities. However, access to this register was temporarily suspended following a European Court of Justice decision but has since been restored.

  • Requirements:
    • Companies must maintain an up-to-date register of beneficial owners
    • The register must be accessible to government authorities

Payment Transparency

When making payments, certain information is required to ensure transparency and prevent money laundering. This information includes accurate details about the payer and beneficiary.

  • Payment Requirements:
    • When the payment service provider is not established in France, the payment order for a funds transfer must include accurate information on the payer and beneficiary
    • When the payment service provider is established in France, only the payment account numbers of the ordering party and beneficiary must be indicated

Anti-Money Laundering Requirements

Certain professions and activities are subject to stricter AML requirements due to the higher risk of money laundering. These include real estate transactions and regulated professions such as lawyers and notaries.

  • High-Risk Professions:
    • Real estate
    • Regulated professions (lawyers, notaries, etc.)
    • International profiles present a greater risk of committing money laundering offences

Future Developments

The EU’s Sixth Anti-Money Laundering Directive aims to standardize European supervision and give more powers to financial intelligence units. A European Anti-Money Laundering Authority (AMLA) is also planned to ensure coordination among players involved in the fight against money laundering.

  • EU Directives:
    • The EU’s Sixth Anti-Money Laundering Directive aims to standardize European supervision and give more powers to financial intelligence units
    • A European Anti-Money Laundering Authority (AMLA) is planned to ensure coordination among players involved in the fight against money laundering

FATF Evaluation

France’s AML regime was evaluated by the Financial Action Task Force (FATF) in 2022. The evaluation concluded that France has a robust and sophisticated framework but needs to improve in areas such as supervision of professionals and oversight of the not-for-profit sector.

  • FATF Evaluation:
    • France’s AML regime was evaluated by the FATF in 2022
    • The evaluation concluded that France has a robust and sophisticated framework but needs to improve in areas such as supervision of professionals and oversight of the not-for-profit sector