Financial Crime World

France Faces Call to Boost Combating Financial Crime Efforts

A recent report by the Financial Action Task Force (FATF) has highlighted that while France has made significant strides in combating financial crime, there are still several challenges that need to be addressed.

Strengths and Weaknesses

The report notes that France’s robust framework for fighting money laundering and terrorist financing has been effective in law enforcement, confiscation, and international cooperation. However, it also identifies areas where improvement is needed.

  • Supervision of Professionals: The supervision of designated non-financial businesses and professions, such as real estate agents and notaries, remains insufficient.
  • Real Estate Sector: Some sectors are not adequately aware of their anti-money laundering (AML) and counter-terrorism financing (CFT) obligations.
  • Virtual Asset Sector: Strengthening supervision of the virtual asset sector is necessary to combat money laundering and terrorist financing effectively.

Successes

France has achieved notable successes in:

  • Financial Intelligence: The country’s financial intelligence agencies have been effective in detecting and preventing money laundering and terrorist financing.
  • Money Laundering Investigations: French authorities have prioritized the prosecution of high-end money laundering cases, resulting in successful convictions.
  • Confiscation of Criminal Assets: France has made confiscating criminal assets a policy priority, depriving criminals of proceeds, property, or other assets valued at EUR 4.7 billion annually.

International Cooperation

France has demonstrated a strong commitment to international cooperation:

  • Mutual Legal Assistance: French authorities provide good quality and effective mutual legal assistance in criminal matters.
  • Informal Cooperation: France makes extensive use of informal cooperation with other countries to combat money laundering and terrorist financing.

Areas for Improvement

The report identifies several areas that require improvement, including:

  • Non-Profit Sector: Enhancing monitoring of the non-profit sector is necessary to prevent its potential misuse for terrorist financing.
  • Targeted Financial Sanctions: France needs to follow up on recent reforms aimed at implementing targeted financial sanctions without delay.

Conclusion

The FATF report emphasizes that France plays an active role in proposing designations to international organizations and national sanctions lists, but highlights the need for continued efforts to combat money laundering and terrorist financing effectively. By addressing the identified weaknesses and building on its successes, France can continue to be a leader in combating financial crime.