France Toughens Laws to Combat Money Laundering
In an effort to combat money laundering and terrorist financing, France has introduced new legislation that grants access to beneficial ownership information, enhances due diligence measures, and strengthens the powers of financial intelligence units (FIUs).
Access to Beneficial Ownership Information
Under the new laws, individuals with a legitimate interest will have unfiltered access to beneficial ownership information held in national registries. This information includes data going back at least five years. The move aims to increase transparency and prevent money laundering.
Enhanced Due Diligence Measures
The laws also introduce wide-reaching due diligence measures, including:
- Enhanced checks on customers’ identities: Obliged entities will have to verify their customers’ identities and monitor transactions.
- Reporting of suspicious activities: Obliged entities will have to report any suspicious transactions to FIUs and other competent authorities.
Increased Powers for Financial Intelligence Units (FIUs)
The laws grant FIUs more powers to analyze and detect money laundering cases, as well as the ability to suspend suspicious transactions.
New Authority Established
A new authority, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), will be established in Frankfurt to supervise compliance with anti-money laundering regulations. AMLA will:
- Directly supervise riskiest financial entities
- Intervene in case of supervisory failures
- Act as a central hub for supervisors
Other Key Provisions
- Top-tier professional football clubs: Involved in high-value financial transactions, these clubs will be required to verify their customers’ identities, monitor transactions, and report any suspicious transactions to FIUs from 2029.
- Ultra-rich individuals: Those with a total wealth worth at least €50 million, excluding their main residence, will be subject to enhanced vigilance provisions.
- Cash payments: The EU-wide limit on cash payments has been set at €10,000, except for private individuals making non-professional transactions.
Conclusion
The new laws aim to strengthen France’s efforts to combat money laundering and terrorist financing, making it easier for authorities to detect and prevent these crimes.