France

New Documents

The French supervisor, Autorité de contrôle prudentiel et de résolution, published its annual report for the year 2021, highlighting its supervision work on anti-money laundering and counterterrorist financing and in addressing emerging challenges such as cyber and climate threats.

The Group of Seven Finance Ministers issued a joint communiqué following a meeting in Germany, highlighting their commitment to a coordinated sanctions response to Russia’s aggression and support for the Financial Action Task Force’s ongoing efforts to enhance beneficial ownership transparency.

News

Enforcement Actions

French regulator Autorité des marchés financiers banned the Lyon, France-based company and its manager from exercising as financial investment advisors for a period of ten years and imposed a €150,000 fine for anti-money laundering and counterterrorist financing shortcomings and other violations.

French regulator Autorité des marchés financiers issued a reprimand and imposed a fine of €150,000 against the Le Val, France-based company and a €50,000 fine against its chairman for three breaches of its anti-money laundering and counterterrorist financing obligations.


Important Facts

  • The U.S. State Department labels France as a jurisdiction of primary concern. The country’s banking, financial and commercial sectors are attractive for money laundering because of its large economy, political stability and sophisticated financial system. Illicit proceeds are generated through public corruption, narcotics and human trafficking, smuggling and other activities associated with organized crime. Another significant source of money laundering comes from sports teams. France has a large informal sector, including hawalas typically used by immigrant populations. However, there is little information on the scale of such activities. Casinos are regulated. The use of virtual money is growing in France, mostly through online gaming and social networks.
  • KYC Covered Entities: Banks, credit and money-issuing institutions, e-money institutions, investment firms, money exchangers, investment management companies, mutual insurers and benefit institutions, insurance intermediaries and dealers, notaries, receivers and trustees in bankruptcy, financial investment advisors, real estate brokers, chartered accountants, auditors, dealers in high-value goods, auctioneers and auction houses, bailiffs, lawyers, participants in stock exchange settlement and delivery, commercial registered office providers, gaming centers, companies involved in sports betting and horse racing tips, and casinos
  • STR Covered Entities: Banks, credit and money-issuing institutions, e-money institutions, investment firms, money exchangers, investment management companies, mutual insurers and benefit institutions, insurance intermediaries and dealers, notaries, receivers and trustees in bankruptcy, financial investment advisors, real estate brokers, chartered accountants, auditors, dealers in high-value goods, auctioneers and auction houses, bailiffs, lawyers, participants in stock exchange settlement and delivery, commercial registered office providers, gaming centers, companies involved in sports betting and horse racing tips, and casinos
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 464 (2014); Convictions: 424 (2013)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 9 High :
Largely Compliant : 29 Substantial :
Partially Compliant : 10 Moderate :
Non-Compliant : 1 Low :

BASEL i

Rank : 122/141
Score : 3.92/10

TRANSPARENCY INTERNATIONAL i

Rank : 23/179
Score : 69/100

Tax Justice Network i

Rank : 33/133
Score : 50/100