France

New Documents

In a speech at the Higher School of Electrical Engineering in Rouen, France, Deputy Governor of the Bank of France Denis Beau discussed lessons learned by regulators and supervisors from recent financial turbulences caused by the digital transformation of the financial system.

Denis Beau, Deputy Governor of the Bank of France, delivered an introductory speech at the World Bank Global Payments Week 2023, focusing on the future of payments and the regulation of crypto-assets.

News

Enforcement Actions

France’s financial regulator reprimanded and fined the Paris-based insurance company €1 million for deficiencies in its know your customer system and failures to assess its anti-money laundering and counterterrorist financing risks.

French regulator Autorité des marchés financiers fined the Paris, France-based portfolio management company €150,000 for anti-money laundering and counterterrorist financing shortcomings and other violations.


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