Executive Order 2009-104 of 30 January 2009 and its implementing decrees1, which transposed the Third Anti-Money Laundering Directive2 into the Monetary and Financial Code, have reorganised France's system for the prevention of money laundering and terrorist financing as follows:
- the scope of application of anti-money laundering (AML) provisions to AMF-regulated professionals has been harmonised;
- due diligence requirements for professionals (standard, simplified or enhanced) vary according to the level of risk determined by statute or by the party subject to the requirements;
- suspicious transaction reporting to the financial intelligence unit, Tracfin, has been extended to all predicate offences punishable by more than a year's imprisonment, including tax fraud;
- the AMF's regulatory scope has been clarified; its General regulation requires the setting-up of risk assessment and management systems3, and specifies the internal control procedures and other necessary measures4 to be implemented.
In light of these changes, the AMF is holding a consultation on the amendments to its General Regulation.
Aside from a few minor adjustments, the same framework will apply to the following professionals: asset management companies, the management companies of forestry investment companies (SEFs), real estate investment trusts (SCPIs) and debt securitisation funds (FCCs), financial investment advisers, central depositaries and securities settlement system operators.
Professionals in these categories will be obliged to:- Prepare a risk classification covering all activities subject to AML measures.
- Draw up internal procedures for:
- assessing, monitoring and controlling AML risks;
- implementing, including within a group, obligations to undertake due diligence, store information and report to Tracfin.
- set up an organisational system that provides for:
- the appointment of a member of senior management to be in charge of the AML system. These functions may be entrusted to another person, but the appointee retains responsibility for them;
- the appointment of a Tracfin correspondent and a Tracfin reporting officer, who must have the information and resources required to fulfil their duties.
Between now and the end of the year, the AMF will provide guidelines to clarify a number of the provisions in the amended General Regulation.
Please send responses to the consultation to contact@amf-france.org before 5 October 2009.
1 Decrees 2009-854 of 16 July 2009 and 2009-1087 of 2 September 2009.
2 Directive 2005/60/EC of 26 October 2005 the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
3 Article L. 561-32 of the Monetary and Financial Code.
4 Article R. 561-38 of the Monetary and Financial Code.