French Monetary and Financial Code
In forceI. - The Autorité de contrôle prudentiel et de résolution shall have the power, with regard to the fight against money laundering and terrorist financing, to impose its obligations on the persons mentioned in 1° to 7° bis of Article L. 561-2 and on the group parent undertakings mentioned in Article L. 561-33 for the obligations incumbent upon them, with the exception of the persons mentioned in 5° and those under the supervision of the Autorité des marchés financiers pursuant to 2° of I of Article L. 561-36, the power of documentary and on-site inspection defined in Section 5 of Chapter II of Title I of Book VI.
It also has the power to take administrative police measures and the power to impose penalties under the conditions set out below.
In addition, it may disclose to the public any information it deems necessary for the performance of its duties, without being bound by the professional secrecy referred to in article L. 612-17.
II. - The Autorité de contrôle prudentiel et de résolution shall ensure compliance with the provisions of Chapters I and II of this Title and the regulatory provisions adopted for their application, and with directly applicable European provisions on the fight against money laundering and terrorist financing, including the technical regulatory standards adopted pursuant to Directive 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing, as well as European regulations on restrictive measures adopted pursuant to Articles 75 or 215 of the Treaty on the Functioning of the European Union.
III. - In order to ensure compliance with the provisions mentioned in II, it may give formal notice, under the conditions set out in Article L. 612-31 of this Code, to any person mentioned in I to take, within a specified period, any measure intended to regularise its situation.
It may also take the precautionary measures provided for in 1° to 3°, 5°, 6°, 11° and 12° of I of Article L. 612-33, as well as those provided for in 2° of II of Article L. 561-33.
In accordance with I of article L. 612-34 , it may also appoint a provisional administrator when the management of the regulated person can no longer be ensured under normal conditions and does not enable it to comply with the provisions mentioned in II.
The police measures mentioned above are ordered under the conditions set out in articles L. 612-35 to L. 612-37 and, where applicable, in II of article L. 612-14.
IV. - Where the Autorité de contrôle prudentiel et de résolution finds that the persons referred to in I, with the exception of the persons referred to in 3°, 3° bis, 4°, 7° and 7° bis of Article L. 561-2, are in breach of the provisions referred to in II, or if these persons have not complied with a formal notice to comply with these provisions, the power to impose the penalties referred to in I shall be exercised in accordance with the conditions set out in Articles L. 612-38 and L. 612-39.
It may also impose, either instead of or in addition to the penalties provided for in article L. 612-39, a financial penalty, the amount of which may be set within the higher of the following two ceilings: one hundred million euros or ten percent of total turnover within the meaning of V of article L. 612-40.
Where direct and personal liability for the breaches mentioned in this article is established in respect of the directors or any other person mentioned in I and II of Article L. 612-23-1 or, in the case of a payment or electronic money institution carrying out hybrid activities, the persons declared to be responsible respectively for the management of payment services activities and the issuing and management of electronic money, the Enforcement Committee may also impose the disciplinary sanctions provided for in 4° and 5° of Article L. 612-39. These sanctions may not exceed a period of ten years. The Enforcement Committee may impose, either instead of or in addition to these sanctions, the disciplinary sanction provided for in VIII of article L. 612-40, in accordance with the procedures defined in IX and XI of the same article.
Where the person referred to in the fourth paragraph of Article L. 561-32 is found to be directly and personally liable for the breaches referred to in this Article, the Enforcement Committee may also prohibit that person from exercising management functions within the persons referred to in Article L. 561-2 for a period not exceeding five years. It may impose, either instead of or in addition to this sanction, the disciplinary sanction provided for in VIII of article L. 612-40, in accordance with the procedures defined in IX and XI of said article.
The provisions of the above paragraph also apply to the permanent representative mentioned in VI of Article L. 561-3 in respect of the duties entrusted to him by the provisions of the technical regulatory standard adopted pursuant to Articles 45.9 and 45.10 of Directive 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing.
V. - When the Autorité de contrôle prudentiel et de résolution becomes aware of breaches of the provisions referred to in II of this Article and of those of Chapter IV of Title II of Book V of this Code or of Article L. 54-10-3 and the regulatory provisions adopted for its application by the persons referred to in 7° and 7° bis of Article L. 561-2 or if these persons have not complied with a formal notice to comply with these provisions, the Supervisory Board may, under the conditions defined in Article L. 612-38, decide to initiate disciplinary proceedings against them.
The Enforcement Committee may impose one of the following disciplinary sanctions on such persons:
1° a warning ;
2° a reprimand
3° Removal from the list referred to in article L. 612-21 or article L. 54-10-3.
It may impose, either instead of or in addition to these penalties, a financial penalty set according to the seriousness of the breach and which may not exceed five million euros. Where the person sanctioned is a legal entity, the Enforcement Committee may decide that its de jure or de facto managers shall be jointly and severally liable for payment of the fine imposed.
The Enforcement Committee may also impose a penalty payment, for which it sets the amount and effective date. A decree of the Conseil d'Etat shall determine the applicable procedure, the maximum daily amount of the penalty and the terms and conditions according to which, in the event of total or partial non-performance or late performance, the penalty shall be liquidated.
When the direct and personal liability of the managers of the persons mentioned in 7° and 7° bis of Article L. 561-2 for the aforementioned breaches is established, the Enforcement Committee may also prohibit them from practising, directly or indirectly, the profession of manual money changer or service provider mentioned in 7° bis of the same Article L. 561-2 for a period not exceeding ten years. It may impose, either instead of or in addition to this sanction, the disciplinary sanction provided for in VIII of article L. 612-40, in accordance with the procedures defined in IX and XI of the same article.
When direct and personal liability for the breaches mentioned in this article is established, within the persons mentioned in 7° and 7° bis of Article L. 561-2, against the person mentioned in the fourth paragraph of I of Article L. 561-32, the Enforcement Committee may also impose on the latter a ban on exercising management functions within the persons mentioned in Article L 561-2, which may not exceed five years. In addition to or instead of this sanction, the Enforcement Committee may impose the disciplinary sanction provided for in VIII of Article L. 612-40, in accordance with the procedures defined in IX and XI of said Article.
VI. - When the Autorité de contrôle prudentiel et de résolution finds that the persons referred to in 3°, 3° bis and 4° of Article L. 561-2 have failed to comply with the provisions referred to in II, or if these persons have not complied with a formal notice to comply with these provisions, the supervisory board may, under the conditions defined in Article L. 612-38, decide to open disciplinary proceedings against them.
The Enforcement Committee may impose one or more of the sanctions defined in I of article L. 612-41 on such persons, in accordance with the procedures defined in that article. In addition to or instead of these sanctions, the Enforcement Committee may impose a financial penalty, the amount of which may not exceed the higher of the following two ceilings: one hundred million euros or ten percent of total turnover within the meaning of V of Article L. 612-40 of the Monetary and Financial Code.
Where the directors of the persons mentioned in the first paragraph of this VI are found to be directly and personally liable for the breaches mentioned in the same paragraph, the Enforcement Committee may also impose the disciplinary sanctions provided for in 4° and 5° of Article L. 612-39. These sanctions may not exceed a period of ten years. The Enforcement Committee may impose, either instead of or in addition to these sanctions, the disciplinary sanction provided for in VIII of article L. 612-40, in accordance with the procedures defined in IX and XI of the same article.
Where direct and personal liability for the breaches or offences mentioned in this article is established within the persons mentioned in the first paragraph of this VI, in respect of the person mentioned in the fourth paragraph of I of Article L. 561 32, the Enforcement Committee may also impose a ban on the latter person from exercising management functions within the persons mentioned in Article L. 561-2, which may not exceed five years. In addition to or instead of this sanction, the Enforcement Committee may impose the disciplinary sanction provided for in VIII of Article L. 612-40, in accordance with the procedures defined in IX and XI of the same article.
VII. - The Autorité de contrôle prudentiel et de résolution shall ensure that Caisse des dépôts et consignations complies with the provisions mentioned in II and shall have the power to impose sanctions. To this end, the Autorité de contrôle prudentiel et de résolution shall exercise its supervisory powers under the conditions set out in Article L. 612-17 in accordance with the procedures set out in Articles L. 612-23 to L. 612-27, L. 612-31, L. 612-38, L. 612-44, and in 1° and 2° of Article L. 612-39. For the implementation of this article, articles L. 571-4, L. 613-20-1 and L. 613-20-2 are also applicable to the Caisse des dépôts et consignations group and its managers.
The Autorité de contrôle prudentiel et de résolution may issue recommendations to Caisse des dépôts et consignations or give it formal notice to take appropriate measures to comply with the obligations arising from the provisions mentioned above.
If the Autorité de contrôle prudentiel et de résolution finds that Caisse des dépôts et consignations has seriously failed to comply with the obligations mentioned above, or if Caisse des dépôts et consignations has not complied with a formal notice to comply with these obligations, the supervisory board may, under the conditions defined in Article L. 612-38, decide to initiate disciplinary proceedings against Caisse des dépôts et consignations.
The Enforcement Committee may impose on Caisse des dépôts et consignations a sanction provided for in 1° and 2° of Article L. 612-39. It may impose a fine of up to one hundred million euros, either instead of or in addition to these penalties. The corresponding sums are recovered by the Treasury and paid into the State budget.
If the person referred to in Article L. 518-11 is found to be directly and personally liable for the failings or breaches of the provisions referred to in the first paragraph of this VII, the Enforcement Committee may also impose the financial penalty provided for in Article L. 612-40 VIII, in accordance with the procedures set out in IX and XI of the same article.
Where the person referred to in the fourth paragraph of I of Article L. 561-32 is found to be directly and personally liable for the breaches or offences referred to in this Article, the Enforcement Committee may also order that person to be disqualified from exercising management functions within the persons referred to in Article L 561-2 for a period not exceeding five years. It may impose, either in place of or in addition to this sanction, the disciplinary sanction provided for in VIII of Article L. 612-40, in accordance with the procedures defined in IX and XI of the same article.
When the Autorité de contrôle prudentiel et de résolution issues recommendations or a formal notice to Caisse des dépôts et consignations or when the supervisory board is asked to examine a situation with a view to initiating disciplinary proceedings against it or against the person referred to in Article L. 518-11, it first obtains the opinion of the Supervisory Commission referred to in Articles L. 518-4 to L. 518-10.
VIII. - The decisions of the Enforcement Committee under IV, V, VI and VII of this Article are published in accordance with the conditions set out in XII of Article L. 612-40.
