French Monetary and Financial Code
In forceI.-The persons referred to in Article L. 561-2 shall define and implement procedures enabling them to determine whether the transaction they are carrying out is one of those referred to in 3° of Article L. 561-10.
II.When they carry out the operation referred to in I, the persons referred to in Article L. 561-2 apply:
1° The following additional due diligence measures, the intensity of which varies according to a risk-based approach and which take into account the specific features of the transactions:
a) The decision to enter into or maintain the business relationship is taken by a member of the executive body or any person authorised for this purpose by the executive body if the customer is domiciled, registered or established in a State or territory mentioned in 3° of Article L. 561-10;
b) Additional information relating to the following is collected: knowledge of their customer and, where applicable, the customer's beneficial owner, the nature of the business relationship, the origin of the customer's and, where applicable, the beneficial owner's funds and assets, and the purpose of the transactions planned or carried out;
c) Enhanced monitoring of the business relationship is implemented by increasing the number and frequency of the checks carried out and by adapting the criteria and thresholds according to which transactions must be examined in greater detail ;
For the persons mentioned in 1° to 6° of Article L. 561-2, the procedures for monitoring transactions must be defined by the person responsible mentioned in I of Article L. 561-32 , who shall ensure that they are implemented.
2° In addition to the measures mentioned in 1°, the same persons shall apply, where applicable, at least one of the following measures based on a risk-based approach:
a) Additional elements of enhanced vigilance;
b) The implementation, for the transactions mentioned in 3° of Article L. 561-10, of enhanced monitoring or reporting mechanisms intended in particular for the person responsible for implementing the system for combating money laundering and terrorist financing mentioned in Article L. 561-32;
c) Restrictions on business relations or transactions with natural persons or any other entity from a State or territory mentioned in 3° of Article L. 561-10.
III.The persons mentioned in 1° to 6° of Article L. 561-2 may not apply the due diligence measures mentioned in I when the transactions mentioned in 3° of Article L. 561-10 originate from or are destined for one of their subsidiaries or branches established abroad, provided that they provide evidence to the competent supervisory authority mentioned in Article L. 561-36 that this subsidiary or branch applies measures at least equivalent to those provided for in Chapter I of this Title with regard to customer due diligence and record keeping.
