New Caledonia Strengthens Anti-Money Laundering Enforcement in Response to EU Regulations

New Caledonia, a French territory in the Pacific, is taking steps to strengthen its anti-money laundering (AML) enforcement in response to the European Union’s (EU) fifth Anti-Money Laundering Directive (5AMLD).

Adapting to EU Regulations

• New Caledonia’s financial institutions and professional services providers are being urged to tighten their AML procedures.
• The government and regulators are taking measures to ensure full compliance with the EU regulations, including:
  • Updating local legislation to align with 5AMLD.
  • Increasing awareness and training programs for financial professionals.
  • Improving technical capabilities for risk identification and mitigation.

Enhanced Regulatory Oversight

• The New Caledonia financial regulator, the Autorité de Contrôle Prudentiel et de Resolution (ACPR), is intensifying its supervision and oversight of financial institutions.
• ACPR is taking a more proactive role in monitoring and enforcing compliance with AML policies and procedures.

Expanded Scope of AML Requirements

• Under 5AMLD, the EU is expanding the scope of entities subject to financial screening.
• Additional sectors like estate agents, lawyers, and accountants are required to implement robust AML policies and procedures.

The Importance of Effective AML Frameworks

• Recent data from Europol highlights the need for effective AML frameworks to curb illicit activity.
• Europol’s European Financial and Economic Crime Centre reported an increase in cross-border financial crimes in 2021.

Protecting New Caledonia’s Financial Institution’s Reputation

• New Caledonia’s proactive stance on AML regulatory compliance is essential for addressing EU expectations.
• Strong AML enforcement is crucial in protecting the reputation of New Caledonia’s financial institutions and maintaining a stable business environment.