French Polynesia Tackles Money Laundering with Risk-Based Approach

The French Polynesia Financial Services Authority (FPFSA) has taken a proactive stance against money laundering and terrorist financing by implementing a risk-based approach to anti-money laundering (AML) compliance. As the regulatory body responsible for overseeing non-bank financial institutions and international financial services in the region, the FPFSA ensures that all entities under its purview adhere to strict AML/CFT requirements.

Conducting Off-Site and On-Site Activities

To achieve this goal, the FPFSA conducts a combination of off-site and on-site activities to monitor compliance. These activities include:

• Off-site monitoring: The authority reviews institutions’ financial records, transaction reports, and other documentation to identify potential risks.
• On-site monitoring: The FPFSA performs regular site visits to verify information gathered during off-site monitoring and assess the institution’s overall AML/CFT framework.

AML/CTF Supervisory Framework

The FPFSA has developed an AML/CTF Supervisory Framework, which outlines the methodology used to determine its supervisory approach. This framework enables the authority to:

• Identify institutions posing the greatest risk and focus its efforts accordingly.
• Allocate resources effectively and address threats and risks in a timely manner.

Benefits of Risk-Based Approach

By adopting a risk-based approach, the FPFSA is able to:

• Enhance the overall stability of the financial system by addressing potential threats and risks proactively.
• Safeguard French Polynesia’s reputation as a reliable and secure jurisdiction for international financial transactions.

Overall, the FPFSA’s risk-based approach to AML/CFT compliance demonstrates its commitment to ensuring the integrity of the financial system in French Polynesia.