France and its definition of PEP

This image has an empty alt attribute; its file name is keila-hotzel-2VyyvZns3qQ-unsplash-1024x683.jpeg — France and its definition of PEP. Photo by Keila Hötzel.

As other European countries like Spain, France has its own definition of politically exposed persons — PEPs. This definition derives from the transposition of European directives regarding the prevention of money laundering, as well as the impetus from the FATF on this matter.

Regarding public officials, French regulations include this definition in the Monetary and Financial Code. This “Monetary and Financial Code” compiles all regulations, both legislative and regulatory, related to the management of the financial system. The regulation indicates in its Article L561-10 that obligated entities must apply additional due diligence measures for “individuals exposed to particular risks due to their political functions.” This same article states that the categories of individuals who will be considered politically exposed persons will be specified by decree.

This is further developed in Article R561-18, included in the regulatory section of the Monetary and Financial Code. As other countries do, such as the Netherlands, politically exposed persons are divided into three categories:

By virtue of the functions they perform or have performed,
Family members,
Individuals closely associated.

The first is the classic way to define PEPs, referring to those individuals who have held the positions listed in the article, which we will detail further on. Direct family members are those individuals who are intimately connected to individuals holding important functions; the regulation states that they will be:

The spouse or partner;
The partner bound by a civil solidarity pact or by a partnership contract registered under foreign laws;
The children, as well as their spouses, partners bound by a civil solidarity pact or by a registered partnership contract abroad;
First-degree relatives in the ascending line.

The last group consists of individuals closely associated with persons holding public functions, specifically:

Individuals who, along with persons holding prominent public functions, are the beneficial owners of a legal entity, a collective investment, a trust, or a comparable legal instrument under foreign law;
Individuals who are the sole beneficial owners of a legal entity, a collective investment, a trust, or a comparable legal instrument under foreign law known to have been established for the benefit of politically exposed persons;
Any individual known to have close business ties with individuals holding relevant public positions.

Finally, it is noteworthy that the French regulation indicates that the PEP status will be maintained for one year after the individual has ceased to hold the position.

List of PEPs in France

The political positions that will qualify as PEPs are:

1° Head of State, head of government, member of a national government or the European Commission;

2° Member of a national parliamentary assembly or the European Parliament, member of the governing body of a party or political grouping subject to the provisions of Law No. 88-227 of March 11, 1988, or of a foreign political party or grouping;

3° Member of a supreme court, a constitutional court, or another high court whose decisions cannot, except in exceptional circumstances, be appealed;

4° Member of a court of auditors;

5° Director or member of the governing body of a central bank;

6° Ambassador or chargé d’affaires;

7° General officer or senior officer in command of an army;

8° Member of an administrative, management, or supervisory body of a public company;

9° Director, deputy director, or member of the board of an international organization created by a treaty, or a person holding an equivalent position in such an organization.

Below we outline the main sources we use at Pibisi to extract information about PEPs in France:

List of PEPs in France

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