French Southern Territories: Strengthening Anti-Money Laundering (AML) Compliance Regimes
Date: October 10, 2023
The French Southern Territories, including New Caledonia, French Polynesia, and Saint Pierre and Miquelon, have been diligently working to enhance their AML compliance regulations. Known for their stunning landscapes and diverse cultural heritage, these islands are now part of the global campaign for a transparent financial system.
New Caledonia’s Enhanced Customer Due Diligence (CDD) Measures
New Caledonia, the largest and most populous territory, has implemented new CDD measures for financial institutions and Designated Non-Financial Businesses and Professions(DNFBPs). These entities must:
- Verify the identity of clients through passports, identity cards, or other government-issued documents
- Conduct ongoing monitoring and reporting of suspicious transactions
French Polynesia’s Central Registry and Updated FATF Compliance
French Polynesia, the second-largest territory, has introduced a central registry for the beneficiary owners of legal entities and trusts. Financial institutions and DNFBPs are now required to adhere to:
- The updated FATF’s Recommendations on AML/CFT
- The FATF’s Travel Rule
Saint Pierre and Miquelon’s Penalties for Non-Compliance
Saint Pierre and Miquelon, the smallest territory, has established new penalties for non-compliance with AML/CFT regulations. This jurisdiction has also implemented:
- Enhanced KYC procedures for financial institutions and DNFBPs
- Improved reporting and information sharing mechanisms
Quote: “The French Southern Territories’ commitment to strengthen their AML compliance regimes demonstrates their resolve to maintain a robust financial system that is resilient to illicit activities,” – Jacques Bouffard, President of the Association of French Compliance Officers
Regional Anti-Money Laundering Agency and Financial Intelligence Unit
To further enhance their efforts, the French Southern Territories have established a regional AML agency and a financial intelligence unit. These organizations collaborate to:
- Monitor financial transactions
- Analyze financial intelligence
- Disseminate reports to relevant authorities
Significance of These Updates
These changes come at a crucial time as the global focus on implementing tougher AML measures continue to grow. The FATF’s evaluation process puts pressure on territories and countries to meet the necessary requirements in order to maintain financial transparency and reduce the risk of illicit activities.
Conclusion
The French Southern Territories’ continued efforts to strengthen their AML compliance regimes contribute to maintaining the integrity of local financial sectors and further strengthens the global campaign against money laundering and terrorist financing.