Financial Crime World

Title: France’s Robust Anti-Financial Crime Framework: A Global Success Story with Ongoing Challenges

Commendation from FATF

Paris, France - The Financial Action Task Force (FATF) has recognized France for its effective measures in combating money laundering and terrorist financing, ranking it among the leading OECD nations in this regard [1]. The report, released on May 18, 2023, commended France’s “robust and sophisticated framework,” yielding substantial results against financial crimes.

Ongoing Challenges

Drug Trafficking in French Overseas Territories

Despite this progress, the report shed light on challenges, particularly with regards to illicit financial dealings linked to drug trafficking in French overseas territories [2]. French Guiana and the French West Indies serve as significant entry points, making it difficult to evaluate the transfer of funds to sub-regional banks and establish formal international cooperation.

Insufficient Supervision in the Non-Financial Sector

Another critical gap remains in France’s control over profits from illegal activities in the non-financial sector. The report highlighted insufficient supervision, particularly for real estate agents and notaries involved in the real estate sector, where money laundering activities are common [3].

France’s Anti-Financial Crime Achievements

France’s international standing in anti-financial crime practices has been on the rise over the past decade [1]. Some of its significant achievements include:

  1. Creation of Dedicated Institutions: In 2013, France established three crucial institutions - Central Office for the Fight Against Corruption and Financial and Tax Offences (OCLCIFF), the French anticorruption agency (AFA), and the National Financial Prosecutor’s office (PNF).
  2. Impact of The National Financial Prosecutor’s office: The PNF has handled and streamlined court cases related to financial crimes and returned €10 billion to the public purse [1].
  3. Role of the Financial Crime Intelligence Service TRACFIN: The Financial Crime Intelligence Service TRACFIN is a “vital role player” in France’s AML/CFT system, contributing significantly to both national and international initiatives.
  4. Active Proposal of Designations: France actively proposes designations to the EU and UN sanctions list.

Necessity for Continued Vigilance

Didier Banquy, the president of the national advisory board for AML/CFT (COLB), acknowledged France’s progress but stressed the need for ongoing vigilance, emphasizing that criminal practices evolve rapidly [4].

[1]: FATF Public Statement [2]: ibid, p. 11 [3]: ibid, p. 14 [4]: Interview with Didier Banquy