Changes to PEP Definitions and AML Regulations in France

The French Ministry of Economy recently introduced changes to the definition of politically exposed persons (PEPs) and expanded the scope of anti-money laundering (AML) regulations. The modifications, while seemingly substantial, only affect a limited number of PEP categories.

The Law on Transparency, established in 2013, aims to promote transparency and combat corruption in public life in France. The recent updates to the law, implemented through the Order of March 17, 2023, have impacted the definition of PEPs.

Previously, the law regulated high-level state executives, political party leaders, members of parliament, and individuals responsible for State-Owned Enterprises (SOEs) with an annual revenue of at least €10 million. The recent changes have increased the revenue cap to €50 million for local SOEs and expanded the law to include political parties operating in France without a strong presence in the French parliament.

These adjustments demonstrate a lower risk appetite of French regulators and a greater willingness to extend trust to local businesses with state involvement. The decree will come into effect on November 1, 2023, giving businesses time to adapt to the new regulations.

Companies engaging in screening processes can ensure compliance with the updated AML regulations by partnering with reliable entities like ComplyAdvantage, which offers thorough examination of the fine print and secure data collection processes. To learn more about ComplyAdvantage’s PEP data collection process, interested parties can request a demo through their website.