The AMF is updating Book III of its general regulations as well as its four guidelines which make up its doctrine on the fight against money laundering and the financing of terrorism (LCB-FT) to take into account the impacts of legislative changes and regulations made in the context of the transposition of the fifth anti-money laundering directive and to make some adjustments.

Update of the general regulations

The update of the general regulations follows the legislative and regulatory changes made as part of the work to transpose the fifth anti-money laundering directive (EU) 2018/843 of the European Parliament and of the Council of May 30, 2018 via Ordinance No. ° 2020-115 and decrees n° 2020-118 and n° 2020-119.
The scope of application of the obligations relating to LCB-FT provided for in the AMF General Regulations is aligned with that provided for in Article L. 561-2 6° of the Monetary and Financial Code and is therefore extended to managers of "Other AIFs" mentioned in 3° of III of Article L. 214-24 of the Monetary and Financial Code, managers of European venture capital funds (EUVECA) and European social entrepreneurship funds (EUSEF) as well as to branches established in France by European management companies for the management of French UCITS or AIFs.
In addition, the general regulations are amended to take into account the exemption provided for in Article R. 561-38-4 of the Monetary and Financial Code for CIFs and CIPs to send the AMF a report on the organization of the internal control system.
Updated guidelines
The impacted doctrine documents are as follows:

• Position - Recommendation DOC-2019-15: Guidelines on the risk-based approach to combating money laundering and terrorist financing;
• · Position - Recommendation DOC-2019-16: Guidelines on due diligence obligations with regard to customers and their beneficial owners;
• Position DOC-2019-17: Guidelines on the notion of politically exposed person;
• Position DOC-2019-18: Guidelines on the obligation to report to TRACFIN.

The main points of attention of this update

In addition to adjusting their scope, the guidelines take into account the legislative and regulatory changes made which provide for the obligation for liable people to consult the register of beneficial owners of client companies registered in the Trade and Companies Register, except in presence of a low risk and the elimination of additional due diligence measures for entering into a remote business relationship.
The guidelines also take into account the regulatory adjustments made when the liable people have recourse to a third party for the implementation of the due diligence obligations before entering into a business relationship or those aimed at strengthening the additional due diligence measures when the transaction involves a high-risk country.
Furthermore, the AMF recommends that reporting entities include in their internal procedures a methodology for assessing the level of equivalence of AML-FT obligations in third countries. To assess this level of equivalence, the AMF recommends that reporting entities consult not only the lists drawn up by the FATF but also the mutual evaluation reports published by the FATF.
Finally, the AMF is adjusting its position regarding the due diligence of collective investment management companies vis-à-vis the tenants of buildings acquired by the real estate funds they manage. Fight against money laundering and the financing of terrorism: l AMF updates its general regulations and guidelines
The AMF is updating Book III of its general regulations as well as its four guidelines which make up its doctrine on the fight against money laundering and the financing of terrorism (LCB-FT) to take into account the impacts of legislative changes and regulations made in the context of the transposition of the fifth anti-money laundering directive and to make some adjustments.

Update of the general regulations

The update of the general regulations follows the legislative and regulatory changes made as part of the work to transpose the fifth anti-money laundering directive (EU) 2018/843 of the European Parliament and of the Council of May 30, 2018 via Ordinance No. ° 2020-115 and decrees n° 2020-118 and n° 2020-119.
The scope of application of the obligations relating to LCB-FT provided for in the AMF General Regulations is aligned with that provided for in Article L. 561-2 6° of the Monetary and Financial Code and is therefore extended to managers of "Other AIFs" mentioned in 3° of III of Article L. 214-24 of the Monetary and Financial Code, managers of European venture capital funds (EUVECA) and European social entrepreneurship funds (EUSEF) as well as to branches established in France by European management companies for the management of French UCITS or AIFs.
In addition, the general regulations are amended to take into account the exemption provided for in Article R. 561-38-4 of the Monetary and Financial Code for CIFs and CIPs to send the AMF a report on the organization of the internal control system.
Updated guidelines

The impacted doctrine documents are as follows:

• Position - Recommendation DOC-2019-15: Guidelines on the risk-based approach to combating money laundering and terrorist financing;
• Position - Recommendation DOC-2019-16: Guidelines on due diligence obligations with regard to customers and their beneficial owners;
• Position DOC-2019-17: Guidelines on the notion of politically exposed person;
• Position DOC-2019-18: Guidelines on the obligation to report to TRACFIN.

The main points of attention of this update

In addition to adjusting their scope, the guidelines take into account the legislative and regulatory changes made which provide for the obligation for liable people to consult the register of beneficial owners of client companies registered in the Trade and Companies Register, except in presence of a low risk and the elimination of additional due diligence measures for entering into a remote business relationship.
The guidelines also take into account the regulatory adjustments made when the liable people have recourse to a third party for the implementation of the due diligence obligations before entering into a business relationship or those aimed at strengthening the additional due diligence measures when the transaction involves a high-risk country.
Furthermore, the AMF recommends that reporting entities include in their internal procedures a methodology for assessing the level of equivalence of AML-FT obligations in third countries. To assess this level of equivalence, the AMF recommends that reporting entities consult not only the lists drawn up by the FATF but also the mutual evaluation reports published by the FATF.

Finally, the AMF is adjusting its position regarding the due diligence of collective investment management companies vis-à-vis the tenants of buildings acquired by the real estate funds they manage.