Financial Crime World

New Caledonia Adopts EU’s New AML Laws Despite Exclusion from the Union

New Caledonia, a Pacific territory with a population of approximately 278,000 under French governance, will implement the European Union’s (EU) new anti-money laundering (AML) laws, known as AMLD5 reforms. This commitment comes despite the fact that New Caledonia is not an official member of the EU.

Why New Caledonia Must Adopt EU’s AML Laws

The requirement for New Caledonia to implement the new EU AML laws stems from its status as a territory under French governance. According to a spokesperson from the French Ministry of Economy and Finance, quoted in the Money Laundering Bulletin, New Caledonia must follow AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) implementing rules within French legislation.

New Measures in the EU’s Fifth AMLD

The EU fifth AMLD, agreed upon in May 2018, aims to strengthen the EU’s AML/CFT regime and address perceived weaknesses following high-profile money laundering scandals. Some of the new measures include:

  • Extended AML/CFT obligations for all financial institutions
  • Digital asset service providers and other entities

The deadline for EU member states to transpose these measures into national law is January 2020.

Aligning with France and Preventing Financial Crime

By implementing the new EU AML laws, New Caledonia is aligning itself with France’s position and reaffirming its dedication to preventing financial crime within its borders. The details of how the territory will go about implementing the laws have not been disclosed.

New Caledonia’s Unique Status Outside the EU

Despite this territorial obligation to adopt the EU’s AML measures, New Caledonia—which lies about 1,200 miles northeast of Australia and covers an area of 18,575 square miles—will continue its unique status outside the EU. Its position in the Pacific and its distinct cultural heritage distinguish it from EU member states, allowing it to maintain its distinctive identity while enhancing its commitment to the global fight against financial crime.