The French Prudential Supervision and Resolution Authority (ACPR)

The French Prudential Supervision and Resolution Authority, or the Autorité de contrôle prudentiel et de résolution (ACPR), is the independent administrative authority responsible for monitoring the conduct of banks and insurance companies in France. Under the authority of the Banque de France, the ACPR is responsible for protecting the French financial system from money laundering and terrorism financing threats by ensuring that obligated financial institutions implement required AML/CFT measures effectively. 

What are the ACPR’s AML/CFT regulations?

As a FATF member state, France is committed to implementing the AML/CFT standards set out by the intergovernmental organization. Accordingly, ACPR counter-terrorist financing and anti-money laundering guidelines require that firms take a risk-based approach to the threats they face and put suitable customer due diligence, screening, and transaction monitoring processes in place as part of an internal AML/CFT program. 

How to comply with the ACPR: In order to comply with ACPR money laundering policy, obligated firms must:

• Complete the ACPR’s annual questionnaire in order to feed money laundering and terrorism financing risk information into the authority’s risk assessment model. 
• Develop a risk-based AML/CFT program commensurate with the risk profile of the firm’s customers and business sector.
• Implement customer due diligence (CDD) measures to ensure that customers are being truthful about their identities and the nature of their business. Customers who present a higher level of risk should be subject to enhanced due diligence measures (EDD). 
• Monitor transactions for suspicious activity that could indicate money laundering or terrorism financing. Suspicious activities include unusual transaction patterns and transactions over a certain value threshold. 
• Screen customers for adverse media stories and against politically exposed person (PEP) lists.
• Screen customers and transactions against relevant international sanctions lists such as the EU’s consolidated list and the United Nations Security Council List. Where sanctions are found to be in place against customers, firms must be able to implement asset freeze measures.   

The ACPR’s supervisory authority gives it the power to conduct on-site inspections of obligated entities. The checks are intended to establish the suitability of the AML/CFT programs that firms have put in place. During an inspection, the ACPR will consider the effectiveness of a firm’s risk assessment process and of its internal AML mechanisms and reporting processes.  

Obligated entities: ACPR AML/CFT compliance obligations apply to all financing companies, insurance services, credit institutions, payment institutions and electronic money institutions operating in France. Institutions acting as intermediaries for banks, and insurance and payment services firms may also be classified as obligated entities and subject to ACPR supervision.

Compliance penalties: Where firms are found to have violated their AML/CFT compliance obligations, the organization has the power to impose a range of disciplinary measures, including warnings, reprimands, license revocations and the prohibition of operations for up to 10 years. The ACPR may also suspend or compel the resignation of senior managers and impose fines of up to EUR 100 million.