VZCZCXRO8291
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHFR #4511 3201237
ZNR UUUUU ZZH
R 161237Z NOV 07
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 1145
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS PARIS 004511 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EEB S/CT, INL AND EUR/WE 
TREASURY FOR DO/IM 
 
E.O. 12958: N/A 
TAGS: EFIN ETTC KCRM KTFN PREL PTER FR
SUBJECT: TERRORIST FINANCE: ILLICIT CASH COURIERS 
 
REFTEL:  STATE 152088 
 
¶1. SUMMARY:  France has had measures in place and investigative 
units dedicated to money laundering detection and prosecution since 
¶1990.  Cross-border movements of cash and other negotiable 
instruments worth 10,000 euros or more must be declared to Customs. 
In 2006, Customs seized 126 million euros in illicit trans-border 
cash shipments.  The government expects to implement the EC Third 
Money Laundering Directive by the end of 2007. 
 
¶2. Since 1st January 1990, French law has required that transfers by 
individuals of money, securities or other financial instruments 
either to or from a foreign country, be declared to the Customs 
Authority, if they exceed a certain amount.  Law 96-392 of May 13, 
1996 extended the definition of money laundering to cover gains from 
all criminal activities.  The system currently in force stems from 
the law of 9 March 2004, which adapted previous legislation to 
changes in the criminal environment.  EC Regulation No 1889/2005 of 
October 26, 2005  instituted an obligatory declaration for cash 
being brought into, or from, the EU. 
 
¶3. Reporting Requirements:  In order to achieve uniformity with the 
rest of the EU, the GOF supplementary budget law for 2006 raised the 
national threshold for declaration to 10,000 euros, applicable from 
15 June 2007.  Similar advance declarations provisions apply to 
transfers via post and commercial couriers.  Several categories of 
institutions, including banks, are required to maintain records of 
all transactions over 8,000 euros as well as safe deposit box usage 
for a period of five years.  The Third EC Money Laundering directive 
is to be implemented in France by the end of 2007. 
 
¶4. Penalties:  Where no declaration, or a false declaration, of 
transfer of capital is made, current legislation imposes sanctions, 
ranging from an administrative fine up to confiscation, when there 
is evidence of accompanying customs or other violations.  Where a 
money laundering offense has occurred, separate criminal penalties 
of up two to ten years in prison plus a 750000 euro fine (under 
Article 415 of the Customs Code) are also imposed. 
 
¶5. Enforcement:  The customs service is responsible for enforcement, 
 as codified in articles 464 and 465 of the Customs Code.  With a 
court order, Customs may hold cash instruments for three months, 
with the possibility of renewal, while it undertakes an 
investigation.  Customs receives and files all declarations in a 
centralized anti-fraud data base. This data base can be searched in 
the context of customs or judicial investigations (on rogatory 
commission) to discover whether offenders have transferred or 
repatriated funds. 
 
¶6. Results:  In 2006, French Customs registered 1792 violations of 
declaration requirements for movement of cash and negotiable 
instruments (up 3.8 percent from 2005).  Seizures totaled 126 
million euros (up 4.9 percent from 2005).  (Note:  The seizure total 
does not include cash movements determined to be otherwise 
legitimate and therefore only subject to a fine.) 
 
STAPLETON #