France Updates Anti-Money Laundering and Terrorist Financing Regulations

Strengthening Efforts Against Money Laundering and Terrorist Financing

The Autorité des Marchés Financiers (AMF), France’s financial regulator, has updated its General Regulation and guidelines on anti-money laundering and combating terrorist financing (AML-CFT) to reflect legislative changes aimed at strengthening efforts against these crimes.

Key Updates

• The AMF’s General Regulation now extends AML-CTF obligations to:
  • Managers of alternative investment funds
  • European venture capital funds
  • Social entrepreneurship funds
  • Branches established in France by management companies managing French investment vehicles
• Exemptions have been made for financial investment advisers and crowdfunding investment advisers from submitting a report on their internal control systems

Guidelines Updates

• Obliged entities are now required to consult the register of beneficial owners of client companies listed on the Trade and Companies Register, unless there is a low risk
• Additional customer due diligence measures in remote business relationships have been eliminated
• Adjustments have been made when using third-party services
• The regulator recommends assessing the level of equivalence of AML-CFT obligations in third countries by consulting lists drawn up by the Financial Action Task Force (FATF) and mutual evaluation reports published by the FATF

Enhanced Due Diligence for Collective Investment Management Companies

• Adjustments have been made regarding due diligence for collective investment management companies regarding tenants of buildings acquired by real estate funds

Aligning with European Union Requirements

The updates aim to enhance France’s AML-CFT efforts, aligning with European Union requirements and strengthening the country’s defenses against money laundering and terrorist financing.