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 Compliance ratings.

In response to President Macron's commitment to combat corruption, France enacted several laws aimed at enhancing transparency and accountability in public life, including the "Loi Sapin II" which established an anti-corruption agency and mandated lobbyist registration. Despite these efforts, concerns remain regarding the effectiveness of enforcement, particularly in cases involving foreign bribery, as highlighted by the OECD's findings that many recommendations for improvement have not been fully implemented. Overall, while France's investment climate is considered favorable with low corruption risk, challenges persist in addressing corruption in public procurement and political financing.

France has a stable and welcoming business climate for foreign investment, supported by a government that actively promotes investment through various incentives and support mechanisms. Despite facing challenges such as a shortage of high-skilled workers and high labor costs, France's modern infrastructure, educated workforce, and recent pro-business reforms, including tax cuts and a focus on innovation, continue to attract significant foreign investment, particularly from the United States.

France has a welcoming investment climate characterized by a stable business environment and significant government efforts to attract foreign investment through various incentives and support mechanisms. Despite challenges such as labor costs and a shortage of skilled workers in emerging technologies, the country offers a modern business culture, strong infrastructure, and a commitment to innovation, making it an attractive destination for foreign investors.