Financial Crime World

French Polynesia Tightens Grip on Financial Crime with Banking Regulations

A Bid to Crack Down on Financial Crimes

Papeete, French Polynesia - The French Polynesian Financial Services Authority (FPFSA) has introduced stringent regulations for Money Services Businesses (MSBs) operating in the territory. This move aims to prevent financial crimes such as money laundering and terrorist financing.

MSBs: Bridging Gaps Left Open by Traditional Banking Systems

According to experts, MSBs play a crucial role in bridging the gaps left open by traditional banking systems, providing a means for more efficient fund transfers. In French Polynesia, two major players in this sector are MoneyGram and Western Union, with agencies located at various locations across the island.

Regulations Under the Money Services Business Act

However, these businesses must adhere to a strict set of regulations outlined in the Money Services Business Act, Chapter 260 of the Revised Laws of French Polynesia, 2009. The act requires MSBs to obtain a license before engaging in any money services business activities.

License Requirements

To secure a license, individuals or entities must:

  • Submit a written application to the FPFSA, providing detailed information and particulars specified in Schedule 1.
  • Demonstrate a net worth of one hundred thousand dollars ($100,000).
  • Pay a non-refundable application fee of $3,000.00.
  • Make a statutory deposit of one hundred thousand dollars ($100,000) in cash, government securities, or another form approved by the Minister.

Annual Fees and Renewals

The FPFSA also imposes an annual fee of $10,000.00 on licensed MSBs. A license is valid from the date of initial issuance until December 31st of that year and may be renewed by the Authority.

Consequences of Non-Compliance

Experts warn that failure to meet these compliance requirements can expose businesses, their owners, and employees to potential criminal penalties and fines. The FPFSA’s strict regulations are aimed at preventing financial crimes, ensuring the integrity of French Polynesia’s financial system.

Conclusion

With the new regulations in place, MSBs operating in French Polynesia must be vigilant in adhering to the laws and guidelines set forth by the FPFSA. Failure to do so can have severe consequences for both the businesses and the individuals involved.