Financial Crime World

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Regulatory Bodies for Financial Crime Prevention in French Guiana

In an effort to strengthen the fight against money laundering and terrorist financing, regulatory bodies in French Guiana are intensifying their efforts to prevent financial crimes. The Autorité des Marchés Financiers (AMF), a key player in this sector, has been at the forefront of this endeavor.

The Fifth Money-Laundering Directive

In 2020, the AMF transposed the Fifth Money-Laundering Directive into French law, which sets out measures to combat terrorist financing more effectively and guarantee improved transparency of financial transactions. The directive was proposed by the European Commission in response to the Paris terrorist attacks and the Panama Papers scandal.

Key Obligations

The directive imposes several key obligations on financial institutions, including:

  • Risk assessment: Identify threats, vulnerabilities, and levels of risk.
  • Identification and verification of clients’ identities: Verify the identity of clients before entering into business relationships.
  • Due diligence measures throughout business relationships: Conduct ongoing monitoring of business relationships to prevent money laundering and terrorist financing.
  • Reporting suspicious transactions to TRACFIN: Report any suspicious transactions to TRACFIN, the French anti-money laundering agency.
  • Internal audit and reporting to the AMF: Conduct internal audits and report findings to the AMF.
  • Implementation of asset freezing measures: Freeze assets suspected of being involved in money laundering or terrorist financing.

Focus on Risk Analyses

To help financial institutions identify threats, vulnerabilities, and levels of risk, European and national authorities publish regular risk assessments. The AMF has published guidelines on the risk-based approach to combating money laundering and terrorist financing.

Regulatory Framework

The regulatory framework for preventing financial crimes in French Guiana is based on several key pieces of legislation, including:

  • The Fifth Money-Laundering Directive (EU) 2018/843: Sets out measures to combat terrorist financing and improve transparency of financial transactions.
  • Directive (EU) 2015/849 of the European Parliament and of the Council on money laundering: Requires EU member states to implement anti-money laundering measures.
  • Commission Delegated Regulation (EU) 2016/1675 identifying high-risk third countries with strategic deficiencies: Identifies countries that pose a high risk in terms of money laundering and terrorist financing.

National Level

The AMF has also published several position papers and recommendations on combating money laundering and terrorist financing, including guidelines on risk assessments, client due diligence, and reporting suspicious transactions.

By strengthening regulatory bodies and imposing key obligations, French Guiana is taking a proactive approach to preventing financial crimes and ensuring the integrity of its financial sector.