Financial Institutions on Réunion Island Face Strengthened Anti-Money Laundering Requirements

Proposed Amendments to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Regulations

The financial regulatory agencies of Réunion, a French overseas department in the Indian Ocean, have proposed amendments to their AML/CFT regulations. These changes aim to strengthen the island’s financial institutions’ AML/CFT programs, which will require them to assess and mitigate risks related to money laundering, terrorist financing, and other illicit activities.

Key Changes

• Alignment with International Standards: The proposal seeks to align Réunion’s AML/CFT requirements with international standards, specifically those set by the French government.
• Risk Assessment and Mitigation: Financial institutions will be required to identify, evaluate, and document their risks, as well as consider national priorities in their compliance efforts.
• Institutional Responsibility: The new regulations aim to ensure that the responsibility for implementing and enforcing AML/CFT programs remains within the institution itself, with personnel based in Réunion who are accessible to and overseen by the regulatory agencies.
• Innovative Approaches: Financial institutions are encouraged to explore innovative approaches to meet their compliance obligations.

Expert Insights

Industry experts believe that these amendments will enhance Réunion’s reputation as a safe and secure jurisdiction for international transactions and investments. “These changes demonstrate the government’s commitment to maintaining a robust anti-money laundering framework,” said a local banking expert. “By strengthening our AML/CFT regulations, we can better protect our financial system and maintain trust among investors.”

Next Steps

The proposed amendments will be subject to public consultation until [date], after which they will be finalized and implemented by the regulatory agencies.