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 the "Restoring Confidence in Public Life" law in 2017, which imposes strict regulations on elected officials and lobbyists. The "Loi Sapin II" further strengthened anti-corruption measures by establishing a new agency and requiring lobbyists to register, while also enhancing protections for whistleblowers. Despite these efforts, concerns remain regarding the effectiveness of enforcement against foreign bribery and the influence of political power on judicial processes.

France has a stable and attractive business climate for foreign investment, supported by a proactive government that offers various incentives and resources to investors. Despite facing challenges such as a shortage of high-skilled workers and high labor costs, France's modern infrastructure, strong intellectual property protections, and commitment to innovation make it a favorable destination for investment, particularly in sectors like technology and green industries.

France offers a welcoming environment for foreign investment, characterized by a stable business climate and significant government support through policy incentives and marketing efforts. Despite facing challenges such as labor costs and a shortage of skilled workers in emerging technologies, France's modern infrastructure, innovative sectors, and recent pro-business reforms, including tax reductions and a focus on ecological transition, make it an attractive destination for investors. The country has seen a record number of foreign investment transactions in 2023, particularly from the United States, highlighting its ongoing appeal to global investors.