Terrorist Financing Prevention: French Polynesia Takes Strong Measures to Ensure Compliance

In its commitment to preventing terrorist financing, the Financial Prudential and Supervision Authority (FPFSA) of French Polynesia has taken a proactive approach in overseeing compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.

Compliance Responsibilities

Under the FPFSA Act No. 33 of 2011 and Proceeds of Crime Act of 2013, the authority is responsible for ensuring that non-bank financial institutions and international financial services providers adhere to strict guidelines. This includes:

• Non-bank financial institutions
• International financial services providers

Supervisory Approach

FPFSA carries out AML/CFT supervision using a risk-based approach, which involves:

• Off-site activities:
  • Reviewing institutions’ policies and procedures
  • Analyzing data and transactions
• On-site activities:
  • Conducting site visits to assess institutions’ compliance with AML/CFT regulations

This approach enables the agency to identify and address potential threats and risks in a timely manner, thereby ensuring that institutions under its purview are well-supervised.

AML/CFT Supervisory Framework

The authority has developed an AML/CFT Supervisory Framework outlining the methodology used for determining its supervisory approach. This framework ensures that:

• FPFSA’s supervision is consistent and effective
• Institutions are monitored and enforced to comply with AML/CFT regulations

With this framework in place, FPFSA is better equipped to monitor and enforce compliance with AML/CFT regulations, ultimately contributing to a safer financial landscape in French Polynesia.