Following the publication France’s AML/CTF National Risk Assessment in February 2023, Financial Crime News has updated its France Financial Crime Dashboard.
This France Dashboard is in the 2023 format from Financial Crime News, which includes, for example approx 150 data points which have been collected and are represented in the 2 page Financial Crime Dashboard. It informs as to the nature of the financial crime threats, the main vulnerabilities, how resilient France is to these threats and its overall level of response, with more KRI and KPI data than ever before, all from publicly available sources albeit assessed and analysed for accuracy and relevance by FCN.
FCN Country Risk Scores & Ratings: France is rated 42/100 moderate Threats, 65/100, moderate to high response & 54/100 moderate overall risk, using the FCN Methodology. This is the overall equal 23rd best risk score of 39 FATF Member Countries (including UAE and Indonesia).
Threats: Three years on from the last NRA published in 2019, the threats haven’t changed, with the highest money laundering threats still: fraud (tax, social and customs), drug trafficking and theft, fraud and scams, and the threat from terrorism described as being of prime importance from a previous “high” threat rating. These are followed by human trafficking, corruption and breaches of probity, again as communicated in 2019.
Sectoral Vulnerabilities & Risks: The main Money Laundering risks identified by France itself in its NRA 2023: after applying threats and vulnerabilities (matrix) generated Low, Moderate, High and Higher Risk Sectors. The Highest Risk sector was: NPOs not receiving public subsidies and with connections to terrorism related hotspots, and High Risk Sectors: NPOs receiving public subsidies and with connections to terrorism related hotspots, Private Banking and Corespondent Banking (ex EU), Payment Institutions, E Money, Digital Assets, Crowdfunding, Trusts, Real Estate Acquisitions (particularly in Paris and Cote D’Azur), Precious Metals & Stones Dealers and Sports Agents.
Responses: France received one of the best sets of ratings against the FATF Recommendations and Immediate Outcomes in the 4th round of reviews.
France is Compliant 19/40 Recommendations, Largely Compliant in 18/40 Recommendations, Partially Compliant in 3/40 Recommendations and Non Compliant in 0/40 Recommendations.
Recommendations for Partially Compliant Ratings are R8 (Targeted Financial Sanctions related to Proliferation), R12 (Politically Exposed Persons), R13 (Correspondent Banking).
On Effectiveness, France received 3/11 Highly Effective Ratings, 6/11 Substantially Effective Ratings & 2/11 Moderately Effective Ratings. The ME ratings were for IO3 (Supervision) and IO4 Preventative Measures.
Key Outcomes Performance Data for France:
FIU Staffing: 196 in 2021
SARs Reported: 160K in 2021
SAR Conversion Rate: 4% in 2021
PPP: Yes as part of Europol PPP
NRA: Yes latest AML in 2023
ML Convictions: 1,300 in 2021
Human Trafficking Convictions: 66 in 2020
Foreign Bribery Convictions: 11 between 2018-2021
Assets Seized: US$573M (0.73% of estimated financial crime proceeds @ 3.6% of GDP – excludes tax related seizures) in 2020
Assets Confiscated: US$75M (0.1% of estimated financial crime proceeds @ 3.6% of GDP – excludes tax related seizures) in 2020.
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