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.

France has made significant strides in addressing corruption through legislative reforms, including the "Restoring Confidence in Public Life" law and the "Loi Sapin II," which established a new anti-corruption agency and enhanced transparency measures for public officials. However, the effectiveness of these reforms is undermined by ongoing concerns regarding the appointment of individuals with corruption allegations to key positions, as well as the slow pace of prosecutions and convictions related to foreign bribery cases, indicating a need for continued vigilance and improvement in enforcement mechanisms.

France presents a stable and welcoming environment for foreign investment, bolstered by a proactive government that actively promotes investment through various incentives and support mechanisms. The country boasts a highly educated workforce and modern infrastructure, although challenges remain, particularly in the availability of skilled workers in emerging technologies and language proficiency. Despite historical issues such as high labor costs and complex regulations, recent reforms, including tax reductions and a focus on innovation, have enhanced France's attractiveness as an investment destination, particularly in high-tech sectors like artificial intelligence and green industries.