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Financial Crime Prevention Strategies in French Southern Territories Need Improvement
France has made significant progress in preventing and combating financial crimes, including money laundering and terrorist financing, but still faces several challenges, according to a recent report by the Financial Action Task Force (FATF).
Gaps in Supervision
While France’s legal framework and law enforcement efforts have been effective in many areas, there are still gaps in supervision of professionals involved in the activities of legal persons and the real estate sector.
- The country faces various threats, including tax fraud, drug trafficking, and terrorism.
- These risks have been identified and laws adapted to mitigate them, but more needs to be done to address the lack of risk-based supervision of designated non-financial businesses and professions, particularly in the real estate sector.
Limited Awareness
The understanding of money laundering and terrorist financing risks by the financial sector and supervisors is generally good, but there are concerns about the limited awareness among some sectors, such as:
- Real estate agents
- Business service providers
of their anti-money laundering (AML) and counter-terrorist financing (CFT) obligations. This includes a lack of understanding of:
- Beneficial ownership
- Politically exposed persons
- Suspicious transactions reporting
Progress in Investigations and International Cooperation
France has achieved notable successes in using financial intelligence, conducting money laundering investigations and prosecutions, and confiscating criminal assets. However, the lack of specialized investigative resources impacts the duration of investigations, particularly in complex cases.
The country has also made significant progress in international cooperation with foreign counterparts, including:
- Providing mutual legal assistance
- Informal cooperation
Fight Against Terrorism Financing
The fight against terrorism and its financing is a top priority for France. The country has achieved good results, including:
- A high conviction rate for terrorist financing prosecutions
- Effective collaboration to exchange information
- Targeted financial sanctions implemented without delay
However, the country needs to improve monitoring of the non-profit sector to prevent potential misuse for terrorist financing.
Conclusion
While France has made significant progress in preventing and combating financial crimes, there is still room for improvement, particularly in supervision and awareness among certain sectors.