France Country Summary

FATF Status

France is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in France was undertaken in 2022. According to that Evaluation, France was deemed Compliant for 19 and Largely Compliant for 18 of the FATF 40 Recommendations. It was rated Highly Effective for 3 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.

In response to President Macron's commitment to combat corruption, France enacted the "Restoring Confidence in Public Life" law in 2017, which prohibits elected officials from employing family members and requires transparency in financial dealings. The "Loi Sapin II" further established an anti-corruption agency and mandated lobbyist registration, aligning French legislation with international standards. Despite these efforts, challenges remain, including a lack of convictions for foreign bribery and concerns over the independence of prosecutors, indicating that enforcement of anti-corruption measures still requires significant improvement.

France has a stable and welcoming business climate for foreign investment, supported by a modern infrastructure and a talented workforce, although there are concerns about a shortage of high-skilled workers in emerging technologies. The government actively promotes investment through various incentives and has seen significant foreign investment activity, particularly from the United States, which has led to job creation. Despite historical challenges such as high labor costs and complex regulations, recent pro-business reforms and a focus on innovation have enhanced France's attractiveness as an investment destination.

France maintains a welcoming investment climate, actively courting foreign investment through various incentives and support mechanisms. The government has successfully attracted significant investments, particularly from the United States, leading to job creation and partnerships in high-tech sectors like artificial intelligence. Despite some historical challenges, recent pro-business reforms and a strong focus on innovation and sustainability have enhanced France's appeal as an investment destination.