At last a national definition of Politically Exposed Persons

"Better late than never": this proverb is taking on its full meaning in the various Compliance departments AML-CFT of French taxpayers, following the publication in the JORF of March 17, 2023 of a decree defining and fixing the list of politically exposed national functions. This is hardly surprising, given that last month, the Cour des Comptes published a report on the national AML-CFT system, recommending that the Direction Générale du Trésor issue the ministerial decree provided for in article R. 561-18 of the CMF, setting out the list of functions that would lead those performing them to be considered as politically exposed persons.

This decree clarifies the application of article R561-18 of the French Monetary and Financial Code (CMF), which was based solely on the transposition of European directives, themselves derived from FATF recommendations.

These clarifications leave no room for individual interpretation when defining what constitutes a national PEP . However, the CMF's current definition of what constitutes an international PEP remains in force. Find below the CMF list, as well as the clarifications brought by this decree.

You will note that there are no revolutions, since the CMF definition covers the entire decree, but clarifications appreciated by all experts and managers of the various Compliance systems. The only real impact is the definition of PEP for a public company/establishment with sales in excess of 50 million euros, which will require an excellent knowledge of these companies/establishments.

This decree will come into force on April¹, 2023 (and don't think that's a fish!) for most of the definitions, on November¹, 2023 for the definition concerning public companies/establishments at the time of an Entry into Relationship, andon April^1, 2024 for public companies/establishments with an existing business relationship.

CMF R561-18 + JORF of March 17, 2023 - Definition of PEP :

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

Details of the order:

• the President of the Republic ;
• Prime Minister ;
• Government members ;

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

Details of the order:

• the President of the Senate ;
• the President of the National Assembly ;
• deputies and senators ;
• Presidents and, where applicable, members of the executive bodies of political parties or groupings subject to the provisions of Law No. 88-27 of March 11, 1988 or persons who, whatever their title, exercise functions equivalent to those mentioned above;

3° Member of a supreme court, constitutional court or other high court whose decisions are not, save in exceptional circumstances, subject to appeal;

Details of the order:

• the President and members of the Constitutional Council ;
• members of the Conseil d'Etat mentioned in article L. 121-2 of the Code of Administrative Justice, with the exception of conseillers d'Etat in extraordinary service who do not exercise jurisdictional functions;
• the members of the Cour de cassation mentioned in 1°, 2°, 3°, 4°, 6°, 7°, 8° and 9° of article R. 421-1 of the Code de l'organisation judiciaire, as well as the members on extraordinary service mentioned in article 40-1 of order no. 58-1270 of December 22, 1958 concerning the organic law on the status of the judiciary;
• The Secretary General of the Constitutional Council referred to in Article 1 of Decree no. 59-1293 of November 13, 1959 on the organization of the General Secretariat of the Constitutional Council;

4° Member of a court of auditors ;

Details of the order:

• the magistrates of the Cour de Comptes (Court of Audit) referred to in article L. 112-1 of the French Code of Financial Jurisdiction;

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

Details of the order:

• The members of the General Council of the Banque de France referred to in Article L. 142-3 of the Monetary and Financial Code;

6° Ambassador or chargé d'affaires ;

Details of the order:

• The ambassadors or chargés d'affaires mentioned in articles 1 and 13 of decree no. 79-433 of June 1, 1979 on the powers of ambassadors and the organization of State services abroad;

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

Details of the order:

• The Chief of Staff referred to in article R.* 3121-1 of the French Defense Code and the Chiefs of Staff of the Army, Navy and Air Force referred to in article R.* 3121-25 of the same code;

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

Details of the order:

• The persons who, within the companies, public establishments and other legal entities mentioned in 1° to 3° of III of Article 11 of the aforementioned Law of October 11, 2013, exercise the functions of Chief Executive Officer, Deputy Chief Executive Officer, sole Chief Executive Officer, member of the Management Board, director or member of the Supervisory Board of limited companies or, whatever their title, functions equivalent to those mentioned above ;
• Persons who, within the companies, public establishments and other legal entities mentioned in 5° of III of article 11 of the aforementioned law of October 11, 2013 whose annual sales, for the last financial year closed prior to the date of appointment of the persons concerned, exceed 50 million euros, hold the positions of Chief Executive Officer, Deputy Chief Executive Officer, sole Chief Executive Officer, member of the Management Board, director or member of the Supervisory Board of limited companies or, whatever their title, positions equivalent to those mentioned above.

9° Director, deputy director, members of the board of an international organization created by treaty, or a person occupying an equivalent position within it.

Details of the order:

• CLEAR