Financial Crime World

France’s Crackdown on Money Laundering: A Look at the Legal Framework, Enforcement, and Anti-Money Laundering Requirements

Introduction

France, as a major European economy, has implemented a robust legal framework to counter money laundering and terrorism financing. In this article, we will explore the legal authorities, requirements, and enforcement efforts related to money laundering in France.

  • The Public Prosecutor serves as the national prosecuting authority for money laundering cases.
  • The Procureur de la République Financier (PNF) handles cases where the proceeds have been obtained from specific offences.

1.2 Criminal Offence and Predicate Offences

  • Money laundering requires proving that a person has knowingly facilitated or assisted in the placement, concealment, or conversion of proceeds from a criminal offence.
  • Exceptions for petty offences apply, and any offence may constitute a predicate to money laundering.

1.3 Extraterritorial Jurisdiction

  • French courts have jurisdiction to prosecute money laundering crimes when the constituent elements are committed in France or if the preparatory act takes place in France.
  • They can also punish money laundering of foreign proceeds.

(To be continued in Part II)

II. Enforcement and Anti-Money Laundering Requirements

2.1 Government Agencies Responsible for Anti-Money Laundering Enforcement

  • The Prudential Control and Resolution Authority (ACPR) and the French Financial Markets Authority (AMF) are responsible for examining financial institutions and other businesses for compliance with anti-money laundering (AML) requirements.

2.2 Anti-Money Laundering Requirements

  • Financial institutions and other businesses are required to adhere to AML regulations.
  • The French Monetary and Financial Code provides the main AML requirements.
  • The EU AML Directives add additional obligations.

(To be continued in Part III)

III. Financial Institutions and Anti-Money Laundering Requirements

3.1 Targeted Financial Institutions and Designated Businesses

  • Designated financial institutions include various entities operating in the banking sector.
  • Other professions such as accountants, auditors, auctioneers, and gambling operators are also subject to AML requirements.

3.2 Types of Payments and Money Transmission Activities

  • Payments and money transmission activities, including cryptocurrencies, are subject to AML requirements.
  • Specific thresholds for reporting apply.

3.3 Anti-Money Laundering Requirements and Cryptocurrencies

  • Cryptocurrencies are subject to AML requirements.
  • France has dedicated units in French intelligence agencies focusing on financial cybercrimes.

3.4 Anti-Money Laundering Requirements and Non-Fungible Tokens (NFTs)

  • AML requirements may apply to certain categories of NFTs.
  • There are no specific provisions for NFTs under French law.

(To be continued in Part IV)

IV. Conclusion

France has established a comprehensive legal framework for addressing money laundering and terrorism financing. Their efforts extend beyond domestic prosecutions, as they cooperate on an international level. By maintaining stringent regulations, conducting regular examinations, and imposing penalties, France continues to be a leader in the global fight against financial crimes.