Financial Crime World

Tightening the Net: Strengthening Terrorism Financing Laws and Regulations in French Southern Territories

In an effort to maintain the integrity of its financial center, France has reinforced its laws and regulations aimed at combating money laundering and terrorist financing. This move has been widely commended by international organizations, further solidifying France’s reputation as a responsible player in the global fight against terrorism.

France’s Commitment to Combating Terrorism Financing

France’s foreign policy prioritizes preventing the channeling of illicit funds into the legal economy and ensuring that terrorists are unable to access funds. To achieve this goal, France actively participates in the development of international standards on money laundering and terrorist financing, consistently enacting them in its national legislation. Its legislation is considered one of the world’s most robust in this respect.

Multilateral Efforts

France has played a crucial role at the multilateral level, supporting measures to combat money laundering and terrorist financing through its involvement with the Financial Action Task Force (FATF). The country was instrumental in drafting the FATF 40 Recommendations, which are recognized as the global standard in combating money laundering and terrorist financing.

Ratified Conventions

France has ratified and enacted several relevant conventions, including:

  • Terrorist Financing Convention of 1999: Combats the financing of terrorism by criminalizing activities such as providing or collecting funds for terrorist purposes.
  • Vienna Convention of 1988: Focuses on combating drug trafficking and organized crime through international cooperation.
  • United Nations Convention against Transnational Organized Crime (Palermo Convention) of 2000: Targets transnational organized crime, including money laundering and terrorist financing.
  • United Nations Convention Against Corruption (UNCAC) of 2003: Combats corruption and money laundering at the national and international levels.
  • Council of Europe Convention on Cybercrime of 2001: Addresses cybercrime and online fraud.

National Measures

At the national level, France has implemented measures to counter money laundering and terrorist financing through:

  • Anti-Money Laundering Act: Combats money laundering by criminalizing activities such as concealing or disguising the source of funds.
  • Criminal Code: Punishes individuals who engage in money laundering or terrorist financing activities.
  • Supplementary provisions in other federal laws: Aligns national laws with international standards.

Monitoring Compliance

The Money Laundering Reporting Office Switzerland (MROS) at the Federal Office of Police registers reports of suspicious activity by financial intermediaries regarding money laundering or terrorist financing and forwards them to prosecution authorities if necessary. The Swiss Financial Market Supervisory Authority (FINMA) and the Federal Gaming Board (FGB) also monitor compliance with due diligence obligations by financial intermediaries under their supervision.

These efforts have been recognized as a key component of France’s commitment to combating terrorism and money laundering, further solidifying its reputation as a responsible player in the global fight against terrorism.