Detecting Suspicious Transactions and Activity in French Guiana: A Key Responsibility for Financial Entities

As a key player in the global economy, French Guiana is subject to strict regulations aimed at preventing money laundering and terrorist financing. In line with these efforts, all financial entities and professional individuals operating in the territory are required to report suspicious activity to TRACFIN, the French anti-money laundering unit.

Who Must Report Suspicious Activity?

According to Article L. 561-2 of the French Financial and Monetary Code, reporting obligations apply to a wide range of entities, including:

Banking and credit institutions: Reporting obligations include all banking and credit institutions operating in French Guiana.
Payment institutions: Payment institutions, such as those handling electronic payments, are also required to report suspicious activity.
Insurers: Insurers, including life insurance companies and property insurance companies, must report any suspicious activities or transactions.
Benefits and pension institutions: Institutions providing benefits and pensions, including social security funds and retirement plans, are subject to reporting obligations.
Banque de France (French Central Bank): The Banque de France is required to report suspicious activity in addition to its other regulatory responsibilities.
Institut d’émission des départements d’outre-mer and Institut d’émission d’outre-mer: These institutions, responsible for issuing currency in French overseas departments and territories, must also report suspicious activity.

Additional Professionals Required to Report Suspicious Activity

In addition to the entities listed above, the following professionals are required to report suspicious activity:

Real estate professionals: Real estate agents, brokers, and developers must report any suspicious activities or transactions.
Legal representatives and directors responsible for authorized gaming or betting operators: Individuals involved in the operation of licensed casinos and other gaming establishments must report any suspicious activity.
Companies involved in money transfer services: Companies providing money transfer services, including wire transfer companies, are subject to reporting obligations.
Chartered accountants and auditors: Chartered accountants and auditors must report any suspicious activities or transactions.
Lawyers: Lawyers, including those practicing law in French Guiana or representing clients with interests in the territory, must report suspicious activity.
Notaries: Notaries public, responsible for authenticating documents and conducting other notarial acts, are required to report suspicious activity.
Bailiffs: Bailiffs, responsible for serving court orders and enforcing judgments, must report any suspicious activities or transactions.
Court administrators: Court administrators, including clerks of the court and other officials responsible for managing court records, are subject to reporting obligations.
Judicial representatives: Judicial representatives, including judges, magistrates, and other officials involved in the administration of justice, must report suspicious activity.
Sports agents: Sports agents, representing athletes and coaches in negotiations with teams and sponsors, are required to report any suspicious activities or transactions.

When Must Reports Be Made?

Reports must be submitted when one of the following circumstances occur:

Terrorism financing: All activities or monetary sums known, believed, or suspected to come from an offense punishable by a prison sentence of more than one year are linked to terrorism financing.
Tax fraud: All activities or monetary sums known, believed, or suspected to come from tax fraud (subject to falling under one of the criteria listed in Decree No. 2009-874 of July 16, 2009) must be reported.

Vigilance Obligation

To comply with reporting obligations, all entities and professional individuals must also exercise a vigilance obligation to detect suspicious activities. Vigilance measures are based on a risk-based approach and standard vigilance. Simplified due diligence measures apply when the risk of money laundering or terrorist financing is low, but additional and enhanced due diligence measures apply when the risk is high.

Penalties for Non-Compliance

Persons who fail to report suspicious activity may face penalties under French law. In addition, individuals who are not subject to reporting obligations but carry out transactions involving movements of capital must declare operations involving sums known to come from an offense punishable by a prison sentence of at least one year.

In summary, detecting and reporting suspicious transactions and activities in French Guiana is a critical responsibility for financial entities and professional individuals operating in the territory. Failure to comply with reporting obligations can result in severe penalties under French law.