Financial Crime World

France’s Fight Against Financial Crime: Progress Made, but Overseas Territories Remain Vulnerable

A Robust Effort to Combat Financial Crime at Home

France has been praised for its significant strides in strengthening its anti-money laundering framework over the past decade. The country has created dedicated institutions such as:

  • Central Office for the Fight Against Corruption and Financial and Tax Offences (OCLCIFF): a key player in combating corruption and financial crimes
  • French Anticorruption Agency (AFA): responsible for preventing and investigating corruption cases
  • National Financial Prosecutor’s office (PNF): instrumental in recovering billions of euros from financial crimes, with over €10 billion returned to the public purse since 2014

The Importance of TRACFIN in Identifying and Tracking Illicit Activities

The financial crime intelligence service TRACFIN plays a vital role in identifying and tracking illicit financial activities. Its work has been crucial in supporting France’s efforts to combat financial crime.

Vulnerabilities Remain in Overseas Territories

Despite progress made at home, France’s overseas territories remain vulnerable to illicit activities due to their geographical location and lack of effective controls. The Financial Action Task Force (FATF) identified French Guiana as one of the territories that poses a significant risk.

  • The proceeds from offenses such as theft, fraud, and misuse of corporate funds are difficult to evaluate, as very often funds are transferred to bank accounts in the sub-region, where formal international cooperation is difficult to establish.
  • Experts have pointed out that the lack of a specific strategy for tackling financial crime in these territories makes it challenging to identify and track illicit activities.

Recommendations from FATF

FATF recommended that France increase the number of money laundering technical specialists across all its competent authorities to enhance its ability to combat financial crime. This is a crucial step towards strengthening the country’s anti-money laundering framework and protecting its overseas territories from illicit activities.

As one expert noted, “It is essential to maintain ongoing vigilance, to adapt, and to update our risk assessment, as criminal practices evolve rapidly according to the different opportunities.”