Financial Crime World

France’s Southern Territories Face Challenges in AML/CFT Compliance

Overview

The French government has made significant strides in strengthening its anti-money laundering and countering the financing of terrorism (AML/CFT) regime. However, a recent report by the Financial Action Task Force (FATF) highlights several key challenges that require improvement.

Challenges in AML/CFT Compliance

  • Non-financial professions: The level of compliance among non-financial professionals is not satisfactory.
  • Implementation in overseas territories: There are concerns about how effectively AML/CFT measures are implemented in France’s overseas territories.
  • Inspections and oversight: The Autorité des marchés financiers (AMF) has a virtual absence of on-site inspections in these territories, and the Autorité de contrôle prudentiel (ACP) needs to increase its inspection activity.

Recommendations

To address these challenges, the FATF report recommends several measures:

  • Enhancing judicial resources: Increase the availability of resources for investigations and law enforcement measures against economic and financial crime.
  • Rectifying shortcomings in overseas territories: Address the identified shortcomings in the implementation of AML/CFT measures in the overseas territories.
  • Improving communication and awareness efforts: Enhance communication and awareness efforts regarding covered professions.

Conclusion

While France has made significant progress in strengthening its AML/CFT regime, there are still areas that require improvement. The French authorities must address these challenges to ensure effective implementation of AML/CFT measures across all regions of the country, including the overseas territories.