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Monetary and Financial Code – Legislative Section
For the purposes of this article, the entities referred to in
paragraphs 1 to 6 of Article L. 561-2 shall, with the exception of
those referred to in paragraph 1 bis of said Article, be the entities
which, for the most part, provide the service referred to in of
Article L. 314-1(II, 6).
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009
Amended by Order No. 2009-866 of 15 July 2009 Art. 14 Official Journal of
16 July 2009
Amended by Order No. 2010-853 of 23 July 2010 Art. 23 Official Journal of
24 July 2010
Article L. 561-8. - Where an entity referred to in Article
L. 561-2 is unable to identify its client or to obtain information on
the object and nature of the business relationship, it shall not
execute any transaction, regardless of the particulars, and shall not
establish or pursue any business relationship. Where it has been
unable to identify its client or to obtain information on the object
and nature of the business relationship and the relationship has
nevertheless been established pursuant to Article L. 561-5, it shall
terminate it.
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009
Article L. 561-9. - I. ― Where they deem the risk of money
laundering and of terrorist financing to be low, the entities
referred to in Article L. 561-2 may reduce the intensity of the
measures provided for in Article L. 561-6. In such cases, they
shall prove to the supervisory authority referred to in Article L.
561-36 that the scope of the measures is commensurate with said
risks.
II. ― The entities referred to in Article L. 561-2 shall not be
subject to the obligations referred to in Articles L. 561-5 and
L. 561-6, provided that there is no suspicion of money laundering
or terrorist financing, in the following cases:
1 For clients or products that present a low risk of money
laundering or terrorist financing, the list of which is determined in
a decree issued following consultation with the Conseil d'Etat;
2 Where the client is an entity referred to in paragraphs 1 to
6 of Article L. 561-2, established or having its registered office in
France, in another Member State of the European Union or in a
third country which imposes equivalent obligations with regard to
the prevention of money laundering and terrorist financing. The
list of said countries shall be determined by the Minister for the
Economy.
The entities referred to in Article L. 561-2 shall gather
sufficient information on their client for the purpose of verifying
that he/it meets the conditions set forth in the two previous
paragraphs.
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009
Article L. 561-10. - The entities referred to in Article L. 5612 shall apply additional due diligence measures with regard to
their client, over and above those referred to in Articles L. 561-5
and L. 561-6, where:
1 The client or his/its legal representative is not physically
present for the purposes of identification;
2 The client is an individual residing in another Member
State of the European Union or in a third country who is exposed
to particular risks on account of the political, jurisdictional or
administrative functions he performs or has performed on behalf
of another State or of those that direct members of his family or
individuals known to be closely associated with him perform or
have performed;
3 The product or the transaction would tend to maintain
his/its anonymity;
4 The transaction is a transaction for their account or on
behalf of third parties entered into with individuals or legal
entities, including their subsidiaries or branches, domiciled,
registered or established in a State or a territory referred to in
paragraph VI of Article L. 561-15.
A decree issued following consultation with the Conseil
d'Etat determines the categories of the entities referred to in
paragraph 2, a list of the products and transactions referred to in
paragraph 3, and the additional due diligence measures.
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009
Article L. 561-10-1. - Where an entity referred to in
paragraphs 1 or 5 of Article L. 561-2 or an investment firm other
than a portfolio management company maintains with a financial
institution located in a country which is not a member of the
European Union or party to the European Economic Area
Agreement or which does not appear on the list referred to in
Article L. 561-9 (II, 2) of the third countries which impose
equivalent obligations with regard to the prevention of money
laundering and terrorist financing, a cross-border relationship as a
banking correspondent or a relationship entailing the distribution
of financial instruments referred to in L. 211-1, the French entity
concerned shall apply to the foreign financial institution with
which it maintains a relationship, in addition to the measures
referred to in Articles L. 561-5 and L. 561-6, enhanced due
diligence measures as determined in a decree issued following
consultation with the Conseil d'Etat.
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009
Amended by Order No. 2010-853 of 23 July 2010 Art. 23 Official Journal of
24 July 2010
Article L. 561-10-2. - I. ― Where they deem the risk of
money laundering and of terrorist financing presented by a client,
a product or a transaction to be high, the entities referred to in
Article L. 561-2 shall increase the intensity of the measures
referred to in Articles L. 561-5 and L. 561-6.
II. ― The entities referred to in Article L. 561-2 shall carry
out a more thorough examination of any transaction which is
particularly complex or is of an unusually high amount or which
does not appear to have any economic justification or lawful
object. In such cases, said entities shall make inquiries of the
client as to the origin of the funds and the use of such sums as
well as the object of the transaction and the identity of the
beneficiary.
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009
Article L. 561-10-3. - The entities referred to in paragraphs 1
and 5 of Article L. 561-2 shall be prohibited from entering into a
relationship as a banking correspondent with a credit institution
or an institution engaged in equivalent activities formed in a
country where said institution has no effective physical presence
which would enable management and administrative activities to
be carried out, unless it is attached to a regulated institution or
group.
The entities referred to in 1 and 5 of Article L. 561-2 shall
take appropriate measures to ensure that they do not enter into or
maintain a relationship as a correspondent with an entity which
itself maintains banking correspondent relationships that allow an
institution formed in the circumstances indicated in the previous
paragraph to use its accounts.
Inserted by Order No. 2009-104 of 31 January 2009 Art. 2 Official Journal of
31 January 2009