[i] Order of 6 January 2021 on the system and internal controls to combat money laundering and terrorist financing money laundering and the freezing of assets and the prohibition on making funds or economic resources, no.ECOT2100415A.
[ii] Article 35 of Order of 6 January 2021 (“Reporting entities shall have a period of one year from the publication of this Order to bring the outsourcing contracts mentioned in Article 10 and concluded before 1 March 2021 into compliance with the requirements of this Article. Subject to the preceding provisions, this Order shall enter into force on 1 March 2021”).
[iii] Article L. 561-2 of the Monetary and Financial Code.
[iv] Ordinance no.2020-115 of 12 February 2020 strengthening the national system for combating money laundering and terrorist financing.
[v] Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
[vi] Recommendations – International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, Financial Action Task Force, 16 February 2012, updated 23 October 2020.
[vii] Article 2 of Order of 6 January 2021 (“Reporting entities shall document the identification, assessment and classification of risks referred to in Article L. 561-4-1 of the Monetary and Financial Code. Prior to the launch of new products, services or business practices, including the use of new distribution mechanisms and new or developing technologies, in connection with new or pre-existing products and services, reporting entities shall identify and assess, in particular, the money laundering and terrorist financing risks associated with them, in order to take appropriate measures to manage and mitigate these risks”).
[viii] Article 2 of Order of 6 January 2021 (“To draw up the above-mentioned risk classification, reporting entities shall take into account, in particular, the information disseminated by the Minister for the Economy, the department mentioned in Article L. 561-23 of the Monetary and Financial Code, the Financial Action Task Force (FATF) and the publications of the Organisation for Economic Cooperation and Development (OECD) and the European Union”).
[ix] Article 5 of Order of 6 January 2021 (“The internal systems and procedures provided for by this Order shall be formalised in writing with the necessary precision to enable their operational implementation. They shall be regularly updated and made available to the staff concerned by the reporting entities and group parent undertakings mentioned in Article 21. They shall also be made available to managers and the supervisory body when they so request”).
[x] Article 21 of Order of 6 January 2021 (“Parent companies of groups shall develop and update a risk classification appropriate to the size and nature of the group. This classification shall take account of all the risks identified and assessed at group level”).
[xi] Article 22 I° of Order of 6 January 2021 (“The parent companies shall put in place an organisation and procedures which make it possible, in particular, to ensure the effectiveness of the anti-money laundering and combating the financing of terrorism system of the whole group, to reduce the risks of money laundering and terrorist financing to which the group is exposed”).
[xii] Article 22 II° of Order of 6 January 2021 (“The person in charge designated at group level mentioned in the fourth paragraph of I of Article L. 561-32 of the Monetary and Financial Code is responsible for defining and ensuring the implementation of the AML/CFT system at group level”).
[xiii] Article 3 of Order of 6 January 2021 (“The person in charge mentioned in the fourth paragraph of Article L. 561-32 of the Monetary and Financial Code is responsible for defining and monitoring the implementation of the anti-money laundering and counter-terrorist financing system. In this capacity, it is responsible for the following tasks in particular : 1 It shall validate the risk classification mentioned in Article 2 and communicate it to the supervisory body, in particular after each update; 2 It shall validate the internal procedures mentioned in Article 6, ensuring that information exchange and escalation procedures make it possible to guarantee the effective and rapid transmission of the information necessary for the performance of their duties to the persons involved in the implementation of AML/CFT obligations; 3 It shall ensure that the subsidiaries and branches of the reporting entity established abroad have mechanisms in place to monitor the compliance of their operations with local rules on the fight against money laundering and terrorist financing and the freezing of assets, and to prohibit the provision or use of funds or economic resources”).
[xiv] The independent administrative authority which monitors the activities of banks and insurance companies in France.
[xv] Article 9 of Order of 6 January 2021 (“[…] the internal procedures provide for information to be given to the Autorité de contrôle prudentiel et de résolution, which is kept informed of any significant developments concerning outsourced services”).
[xvi] Article 10 of Order of 6 January 2021 (“When they use an external service provider under the conditions set out in Article R. 561-38-2 of the Monetary and Financial Code, reporting entities shall specify in their outsourcing contract: 1. The tasks that they have entrusted to the external service provider and the procedures that they have defined for implementing these tasks and that the service provider undertakes to comply with; 2. the obligation of the external service provider to inform them of any event that may have a significant impact on its ability to perform the outsourced tasks effectively and in accordance with applicable law; 3. their obligation to provide the service provider with the information necessary to perform the tasks entrusted to it; 4. The obligation for the external service provider to provide back-up mechanisms to ensure continuity of service when this is no longer ensured due to a serious incident or, when the outsourced service concerns the implementation of obligations relating to the freezing of assets and the prohibition on making funds or economic resources available or using them, any incident. In the absence of such an obligation in the contract, the reporting entities themselves have such back-up mechanisms; 5. The obligation for the external service provider to transmit to them any information necessary for the implementation of their obligations, in particular with regard to declarations and the freezing of assets and the prohibition on making funds or economic resources available or using them, as well as the procedures for such transmission; 6. The training requirements that the service provider undertakes to respect for the implementation of the tasks; 7. The arrangements for protecting confidential information, in particular that which is subject to professional secrecy; 8. The terms of the control they exercise over the external service provider, in particular the obligation for the external service provider to allow them access, as necessary, if necessary, on the spot and in compliance with the regulations relating to the communication of information, to any information relating to the outsourced services; 9. The prohibition on substantially modifying the outsourced service without the prior agreement of the reporting organisation; 10. The obligation for the external service provider to give the Autorité de contrôle prudentiel et de résolution, or any equivalent foreign authority within the meaning of Articles L. 632-7, L. 632-12 and L. 632-13 of the Monetary and Financial Code, access to the information on the outsourced activities necessary for the performance of its mission, including on site”).
[xvii] Article 35 of Order of 6 January 2021 (“Reporting entities shall have a period of one year from the publication of this Order to bring the outsourcing contracts mentioned in Article 10 and concluded before 1 March 2021 into compliance with the requirements of this Article. Subject to the preceding provisions, this Order shall enter into force on 1 March 2021”).
[xviii] Article 11 of Order of 6 January 2021 (“The reporting entities shall have a system for detecting: 1. Any transaction carried out for the benefit of a person who is subject to a freezing order and a prohibition on making funds and economic resources available or using them pursuant to Articles L. 562-2, L. 562-3, L. 562-3-1, L. 562-5 and L. 713-16 of the Monetary and Financial Code or a European regulation on restrictive measures taken pursuant to Articles 75 or 215 of the Treaty on the Functioning of the European Union, or a regulation taken pursuant to the same Article 215 for other purposes; 2. Funds and economic resources held, owned, possessed or controlled by persons who are subject to the measures referred to in 1.”).
[xix] Article 12 of Order of 6 January 2021 (“The internal procedures put in place by the reporting entities with regard to the freezing of assets and the prohibition on making funds or economic resources available or using them shall provide for: 1° The methods for analysing the alerts mentioned in Article 11, in particular the information to be collected and the methods for storing it, including when the alert has been closed without action; 2° The methods for implementing the measures for freezing assets and prohibiting the provision or use of funds or economic resources; 3° The methods for lifting these measures, in particular when the decrees or regulations providing for them are no longer in force or in the event of authorisation to release them as provided for in Article L. 4° The procedures for informing the Minister responsible for the economy when the measures provided for in Articles L. 562-4, L. 562-7 and R. 562-3 of the Monetary and Financial Code, as well as European regulations on restrictive measures taken pursuant to Articles 75 or 215 of the Treaty on the Functioning of the European Union and regulations taken pursuant to the same Article 215 for other purposes, are implemented, under the conditions set out in Chapter 2 of Title VI of Book V of the Monetary and Financial Code”).
[xx] Article 15 of Order of 6 January 2021 (“The persons mentioned in Article R. 561-38-4 shall designate a person responsible for the permanent control of the AML/CFT system and the freezing of assets and the prohibition on making funds or economic resources available or using them, made by the persons dedicated to the control function mentioned in Article R. 561-38-4 of the Monetary and Financial Code”).
[xxi] Article 16 of Order of 6 January 2021 (“Periodic monitoring of the arrangements for combating money laundering and terrorist financing and for assets freezing and prohibiting the making available or use of funds or economic resources, shall make it possible to verify, in addition to compliance with the provisions of Article 13, the effectiveness and appropriateness of the ongoing monitoring carried out in this area”).
[xxii] Article 14 of Order of 6 January 2021 (“The reporting entities referred to in Article R. 561-38-4 shall ensure, through their organisation, strict independence between, on the one hand, persons carrying out operational activities and, on the other hand, persons dedicated solely to the function of controlling operations”).
[xxiii] Articles 15 and 17 of Order of 6 January 2021 (“The supervisory body shall be informed by the management of the appointment of the head of permanent supervision, whose identity shall be communicated to the Autorité de contrôle prudentiel et de résolution” and “the supervisory body is informed by the management of the appointment of the person responsible for the periodic inspection, whose identity is communicated to the Autorité de contrôle prudentiel et de résolution”).
[xxiv] Article 25 of Order of 6 January 2021 (“The responsibility for ensuring that the reporting entity or, where applicable, the parent company of a group complies with the obligations set out in II of Article L. 561-36-1 of the Monetary and Financial Code lies with the management and the supervisory body. They must have all the information they need for this purpose”).
[xxv] Article 26 of Order of 6 January 2021 (“The Directors of the reporting entities and, where applicable, of the parent company of the group, shall periodically assess and monitor the effectiveness of the systems and procedures put in place to comply with the provisions of II of Article L. 561-36-1 of the Monetary and Financial Code”).
[xxvi] Article 27 of Order of 6 January 2021 (“Reporting entities and parent company of groups shall draw up the report referred to in the third paragraph of Articles R. 561-38-6 and R. 561-38-7 of the Monetary and Financial Code in accordance with the provisions of the Order of 21 December 2018 on the report on the organisation of internal control systems to combat money laundering and terrorist financing and on the freezing of assets and the prohibition on making funds or economic resources available or using them for the entities referred to in Article 1 of this Order”).
