France

New Documents

The Group of 7 published a report outlining common public policy principles for establishing retail central bank digital currencies, covering a range of important matters related to financial stability, cybersecurity, inclusion and tackling illicit finance.

The finance ministers and central bank governors of the Group of 7 member countries issued a statement on central bank digital currencies and digital payments, highlighting the importance of international cooperation to ensure common regulatory standards.

News

Enforcement Actions

The National Financial Prosecutor of the Paris First Instance Court entered into an agreement with HSBC Private Bank (Suisse) SA requiring the Geneva, Switzerland-based financial institution to pay €300 million for allegations of aggravated money laundering of tax evasio

The National Financial Prosecutor of the Paris First Instance Court entered into an agreement with HSBC Private Bank (Suisse) SA requiring the Geneva, Switzerland-based financial institution to pay €300 million for allegations of aggravated money laundering of tax evasion proceeds.


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