Comprehensive AML Laws and Regulations: France

France has developed a robust framework to combat money laundering (ML) and terrorist financing (TF), aligning with international standards. These regulations cover various sectors, including banking, insurance, asset management, wealth management, payment processors, fintech, lending, and crypto, ensuring the integrity of its financial system.

Key Laws and Guidelines

• Monetary and Financial Code: The Monetary and Financial Code serves as the primary legislation for combating money laundering and terrorist financing in France. The code mandates financial institutions to implement customer due diligence, maintain records, and report suspicious transactions. It also outlines the procedures for the confiscation of proceeds derived from money laundering activities.
• Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Regulations: These regulations complement the Monetary and Financial Code by establishing detailed requirements for customer due diligence, transaction monitoring, and reporting of suspicious activities. They provide specific instructions for various sectors, including banking, insurance, and fintech, on implementing effective AML/CFT measures.
• Autorité de Contrôle Prudentiel et de Résolution (ACPR) Guidelines: The ACPR issues guidelines to support compliance with AML/CFT regulations. These guidelines provide specific instructions for various sectors on implementing effective AML/CFT measures. They also outline the responsibilities of reporting entities in conducting customer due diligence and reporting suspicious activities.
• Financial Markets Authority (AMF) Regulations: The AMF issues regulations to ensure compliance with AML/CFT standards within the securities sector. These regulations mandate the implementation of robust AML programs, customer due diligence, transaction monitoring, and the reporting of suspicious activities.

Regulatory Bodies

• Tracfin (Traitement du renseignement et action contre les circuits financiers clandestins): Tracfin is the central agency responsible for receiving, analyzing, and disseminating reports on suspicious transactions. It coordinates AML efforts across various sectors and collaborates with international counterparts to enhance AML/CFT frameworks.
• Autorité de Contrôle Prudentiel et de Résolution (ACPR): The ACPR oversees the implementation of AML regulations within the banking and insurance sectors. It issues directives and guidelines to ensure compliance with AML/CFT standards and conducts regular inspections to enforce these regulations.
• Financial Markets Authority (AMF): The AMF regulates the securities market, ensuring that firms implement effective AML measures. It issues guidelines for customer due diligence, transaction monitoring, and reporting of suspicious activities within the securities sector.
• Ministry of Economy and Finance: The Ministry of Economy and Finance oversees the implementation of AML regulations for non-financial businesses and professions, including real estate and precious metals. It issues guidelines and conducts inspections to ensure compliance with AML/CFT standards.
• French Police: The French Police are responsible for investigating and prosecuting money laundering offenses. They collaborate with other Regulatory Bodies and law enforcement agencies to enforce AML laws and prevent financial crimes.

History of Regulations

• 1986: Enactment of the first anti-money laundering laws.
• 1990: Establishment of Tracfin.
• 2009: Introduction of the Monetary and Financial Code.
• 2013: Implementation of AML/CTF regulations in line with the European Union's Fourth Anti-Money Laundering Directive (4AMLD).
• 2015: Strengthening of AML regulations following the Paris terrorist attacks.
• 2017: Issuance of guidelines by the ACPR and the AMF for reporting entities to enhance AML compliance.

Sector-specific Regulations

• Banking and Financial Institutions: Regulated by the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the banking and financial institutions sector is required to implement robust AML/CFT programs, including strict KYC protocols, continuous monitoring of transactions, and the reporting of suspicious activities. Banks and financial institutions must also maintain records for a minimum of five years.
• Insurance: The insurance sector, overseen by the ACPR, mandates companies to implement effective AML measures. This includes customer due diligence, transaction monitoring, and the reporting of suspicious activities to Tracfin.
• Asset Management and Wealth Management: Regulated by the Financial Markets Authority (AMF), asset management and wealth management firms must adhere to stringent AML regulations. These firms are required to implement robust AML programs, conduct thorough customer due diligence, and monitor transactions for suspicious activities. They must also report any suspicious transactions and maintain detailed records.
• Payment Processors and Fintech: Payment processors and fintech companies are subject to regulations issued by the ACPR. These entities must implement comprehensive AML measures, including customer verification, real-time transaction monitoring, and the reporting of suspicious transactions. They must also comply with guidelines issued by the AMF for non-bank financial activities.
• Lending: Lending institutions, both traditional and fintech-based, must adhere to AML regulations set by the ACPR. These institutions are required to conduct customer due diligence, monitor transactions for suspicious activities, and report any suspicious transactions to Tracfin. They must also maintain records of all transactions and customer information.
• Crypto: The crypto sector is regulated under guidelines issued by the AMF. Virtual asset service providers (VASPs) are required to implement robust AML measures, including customer verification, transaction monitoring, and the reporting of suspicious activities. VASPs must also maintain detailed records of all transactions.