Financial Crime World

French Polynesia Grapples with Growing Threat of Financial Crimes

Financial regulators in French Polynesia are taking proactive steps to combat money laundering, terrorist financing, and other financial crimes that have been on the rise in recent years. The country’s Financial Intelligence Unit (FIU) is working closely with financial institutions to identify suspicious transactions and prevent illegal activities.

Vulnerability to Financial Crime

French Polynesia is particularly vulnerable to financial crime due to its strategic location in the Pacific Ocean, making it a hub for international trade and finance. The country’s lack of strict anti-money laundering (AML) regulations has also made it an attractive destination for criminal organizations looking to launder illicit funds.

Combating Financial Crime

To address this issue, French Polynesia has implemented AML/CFT regulations that require financial institutions to:

  • Conduct thorough customer due diligence
  • Report any suspicious transactions to the FIU
  • Create a comprehensive compliance framework that encompasses all aspects of business operations

The Compliance Code in French Polynesia emphasizes the importance of:

  • Knowing and following regulations
  • Creating awareness among stakeholders about the risks of non-compliance
  • Collaboration with international partners who adhere to global anti-money laundering and anti-terrorist financing norms and standards

Advanced Screening Tools

MemberCheck, a leading provider of AML/CFT solutions, is helping financial institutions in French Polynesia to stay ahead of the game by providing them with:

  • Advanced screening tools that detect Politically Exposed Persons (PEPs), sanctions, and other high-risk individuals
  • Sophisticated scan filters and due diligence workflow enable clients to minimize false matches and reduce the risk of non-compliance

International Collaboration

In a recent move, Tracfin, France’s financial intelligence unit, worked with its partners to enhance the detection capabilities of compliance departments in key financial institutions by sharing profiles of high-risk individuals. This initiative has helped to strengthen the country’s fight against money laundering and terrorist financing.

Conclusion

French Polynesia’s fight against financial crimes requires a collaborative effort between financial institutions, regulators, and international partners. By implementing effective AML/CFT regulations and using advanced screening tools, the country can reduce the risk of financial crime and maintain its reputation as a safe and reliable destination for international finance.