Security & Defense

#2016-1635Ordinance No. 2016-1635 Strengthening France's Measures Against Money Laundering and Terrorist Financing

🇫🇷France··Other·High Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

This law strengthens France's actions against money laundering and terrorist financing. It updates the obligations of financial institutions and businesses in identifying and reporting suspicious activities. Entities such as banks, insurance companies, and payment service providers are now required to follow stricter identity verification and risk assessment procedures.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Enhanced identity verification requirements
  • Stricter risk assessment procedures
  • Expanded reporting obligations for financial institutions

Obligations

What this law requires

high

Banks, credit institutions, and their branches must implement stricter identity verification procedures for all clients conducting operations in France

Credit institutions, payment institutions, and electronic money institutions (including foreign branches operating in France)
operational
high

Payment service providers and electronic money institutions must conduct enhanced risk assessment procedures for client relationships

Payment service providers, electronic money institutions, and their branches
operational
high

Insurance companies and intermediaries must identify and report suspicious activities related to money laundering and terrorist financing

Insurance companies, insurance intermediaries, mutual societies, and social security institutions
reporting
high

All subject entities must identify and verify the beneficial owner (bénéficiaire effectif) as part of client relationship establishment

All entities listed in Article L. 561-2 (17 categories including financial institutions, legal professionals, real estate agents, art dealers)
disclosure
high

For life insurance and capitalization contracts, the beneficial owner of contract beneficiaries must be identified where applicable

Insurance companies offering life insurance and capitalization contracts
disclosure

Affected Parties

financial institutionsinsurance companies

Tags

money laundering,terrorism financing,financial compliance