Financial Crime Threats Lurk in French Southern Territories
Despite significant progress in combating financial crime on its mainland territory, France’s overseas territories remain vulnerable to illicit activities related to drug trafficking. According to a recent report by the Financial Action Task Force (FATF), the country’s control over profits from illicit trade in these regions is a critical gap.
A Robust Framework with Critical Gaps
The FATF report praises France’s efforts to combat money laundering and terrorist financing, citing significant seizures of ill-gotten gains. However, it highlights several areas where improvements are needed:
- Overseas territories: The report notes that the country’s control over profits from illicit trade in its overseas territories remains a critical gap.
- Limited international cooperation: The sub-region’s maritime access to the Mediterranean and Atlantic via both EU and overseas borders makes tracking funds transferred to bank accounts difficult.
- Absence of a specific strategy: There is no clear strategy for this geographical zone, which remains a major concern.
Recommendations for Improvement
To address these concerns, the FATF report recommends:
- Increasing money laundering technical specialists: France should increase the number of money laundering technical specialists across all its competent authorities.
- Enhancing supervision of the non-financial sector: Supervision of the non-financial sector in France is insufficient, particularly for real estate agents and notaries involved in the industry.
A Call to Action
In response to the report, Didier Banquy, president of COLB, emphasized the need for continued adaptability and risk assessment in light of rapidly evolving criminal practices. Ongoing vigilance and cooperation are essential to addressing the complex threats posed by illicit financial activities.
Conclusion
France’s unique geography makes it vulnerable to drug trafficking, particularly for cocaine destined for mainland France. While the country has made significant strides in combating financial crime on its mainland territory, ongoing efforts are needed to address the complex threats posed by illicit financial activities.