French Guiana: A Blind Spot in France’s Fight Against Financial Crime

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Despite being ranked among the top OECD countries in tackling financial crime, France is struggling to combat illicit activities linked to drug trafficking in its overseas territories. French Guiana, a region with a long history of money laundering and corruption, has emerged as a critical gap in the country’s control over profits from illegal trade.

A Vulnerable Territory

French Guiana’s strategic location makes it a “factor of major inherent vulnerability” for drug trafficking. The territory’s maritime access to the Mediterranean and the Atlantic via EU and overseas borders allows cocaine from South America to pass through, making it difficult for authorities to track the proceeds from these offenses.

• Vulnerability to drug trafficking: French Guiana’s location makes it a key transit point for cocaine shipments from South America.
• Difficulty in tracking proceeds: The territory’s access to EU and overseas borders makes it challenging for authorities to monitor the flow of money from illicit activities.

A Critique of France’s Supervision

The FATF investigation also criticized France’s supervision in the non-financial sector, particularly in real estate, which is an industry prone to illicit financial activities. The report recommended that France increases the number of money laundering technical specialists across all competent authorities to better address this issue.

• Insufficient supervision: France’s oversight in the non-financial sector, including real estate, has been deemed inadequate by the FATF.
• Need for increased expertise: The report recommends increasing the number of money laundering technical specialists to improve supervision and detection.

Ongoing Reforms and Challenges

France has implemented impactful reforms over the past decade, including the creation of dedicated institutions such as the 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). However, critical gaps remain.

• Reforms: France has established various institutions to combat financial crime and corruption.
• Challenges: Despite these reforms, France still faces challenges in effectively controlling profits from illicit activities in its overseas territories.