Financial Crime World

Financial Institution Regulatory Obligations in French Polynesia

The Institut d’émission d’Outre-Mer (IEOM) is responsible for regulating financial institutions in French Polynesia. Established in December 1966, IEOM provides central banking services to the territories of New Caledonia, French Polynesia, Wallis-and-Futuna, and Antarctica.

Main Categories of Duties and Activities

IEOM’s duties and activities can be categorized into five main areas:

  • Issuing Currency: The “franc CFP” (XPF) is the official currency in these territories, with a fixed parity with the euro.
  • Supervising Banking System: IEOM works with ACP to maintain stability and protect deposits and savings.
  • Conducting Monetary Policy: The IEOM Board orients credit policy through refinancing loans granted by banks to priority economic sectors.
  • Providing Economic, Financial, and Statistical Data: IEOM publishes monthly economic letters, quarterly bulletins, and an annual report analyzing the economic situation of each territory.
  • Providing Central Banking Services: IEOM offers services such as corporate ratings, interbank transfers, and public and private money transfers between territories and metropolitan France.

Key Obligations

IEOM’s regulatory obligations in French Polynesia include:

  1. Issuing Uniform Currency with Fixed Parity to Euro: IEOM ensures that the “franc CFP” (XPF) maintains a fixed parity with the euro.
  2. Supervising Banking System for Stability and Deposit Protection: IEOM works with ACP to maintain stability and protect deposits and savings in French Polynesia’s banking system.
  3. Conducting Monetary Policy through Refinancing Loans: The IEOM Board orients credit policy through refinancing loans granted by banks to priority economic sectors.
  4. Providing Accurate and Timely Economic, Financial, and Statistical Data: IEOM publishes regular reports on the economic situation of each territory in French Polynesia.
  5. Offering Central Banking Services: IEOM provides various services such as corporate ratings, interbank transfers, and public and private money transfers between territories and metropolitan France.

By fulfilling these obligations, IEOM plays a crucial role in maintaining the stability of French Polynesia’s financial system and promoting economic growth in the territory.