Governance flaws all too common

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An LCB-FT system is only as good as its governance.
However, the findings of ACPR and AMF inspections are unanimous: organizational weaknesses are still all too common, and sometimes structural.
LCB-FT managers working in isolation, with no dedicated resources. Critical functions entrusted to untrained staff. Combination of compliance and internal control, compromising independence.
The problem is not size, nor sector. From the small company where the TRACFIN declarant has never been trained, to the large group that entrusts the monitoring of alerts to inexperienced agents: the findings are identical.
Without robust governance, LCB-FT compliance remains a facade. Organizational rigor is not a luxury - it's a prerequisite.

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🔎 What the ACPR sanctions tell us:

A bank was recently sanctioned for having excluded certain accounts from its automated surveillance system, for having incorrectly parameterized its detection scenarios, and for having insufficiently motivated its dismissals.
These organizational failures led to a sanction of 4.5 million euros, reflecting the Authority's increased severity in the face of governance failures.
👉 Read the decision

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Proportionality, yes. Weakness, never.

The regulations rightly provide for a proportionate approach: a very small business is not expected to have the same organization as a systemic bank.
But this proportionality in no way authorizes inadequacy. Each institution must demonstrate that its system is adapted to its risks.
This implies, at the very least: knowledge of customers, active monitoring of transactions, rigorous handling of alerts, and a real capacity to report suspicions.
Even in a light structure, the separation of critical functions can be ensured, even if this means outsourcing or a supervised combination of functions.
What the AMF expects is tangible evidence of governance that is understood, structured and seriously applied.

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🔎 What the ACPR sanctions tell us :

A credit institution was recently sanctioned for insufficient knowledge of its customers and shortcomings in the implementation of asset freezing obligations.
The breach was punished with a fine of one million euros, a reminder that even apparently structured schemes are expected to meet the highest standards.
👉 Read the decision

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Laying the right foundations

A credible system begins with the clear identification of key functions.
Some are mandatory: LCB-FT Manager, TRACFIN Declarant, TRACFIN Correspondent, Permanent Control Manager (unless exempted), Periodic Control Manager (unless exempted).
Others reinforce the solidity of the system: KYC Controllers, Compliance Officers, Second Level Manager, LCB-FT Trainer.
It is recommended that these functions be represented in a dedicated organization chart, and that this document be submitted when the company is first audited.
In large organizations, the Board of Directors and General Management must provide the impetus, define the strategy, allocate resources and monitor implementation.
The LCB-FT Manager must be positioned high enough to act freely and effectively.

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Lines of defense: a proven model

At Astrée, we advocate the systematic adoption of the line-of-defense model.
First line: operational businesses (KYC, anomaly detection).
Second line: supervision and permanent control (managers, department heads).
Third line: central compliance (LCB-FT manager, TRACFIN declarant and correspondent).
Fourth line: periodic control (internal or external audit).
Even in very small businesses, this logic remains valid, with separation of critical missions.

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Digital vigilance

Faced with the explosion in financial flows and the growing complexity of money-laundering schemes, a credible system relies on high-performance technological tools (automated filtering, transactional monitoring, automated alerts, AI).
These tools are no substitute for human intervention: they must be properly configured and supervised to remain effective.

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To govern is to protect

Implementing strong LCB-FT governance is not about ticking a box.
It's about protecting the company against major legal, financial and reputational risks, proving its control to the authorities and building an internal culture of vigilance.
Without governance, systems collapse. With it, they form a lasting bulwark.

Never forget: when it comes to LCB-FT, to govern is to protect.

Astrée Expertise

Effective governance means structuring your system methodically.
Astrée can help you build and consolidate your LCB-FT governance:
- Comprehensive diagnosis of your existing systems,
- Mapping of key functions and organizational recommendations,
- Assistance with compliance and separation of critical roles,
- Targeted training for managers and management committees.

👉 Find out more : https://astreeavocatsetconsultants.com/accompagnement-juridique-lcb-ft/

Training with Astrée Faculté

Would you like to strengthen your AML/CFT governance skills?
Astrée Faculté offers dedicated training courses, designed on the basis of our experience in the field:
- Building an effective governance system: https://astreefaculte.fr/produit/formation-construire-un-dispositif-de-gouvernance/

👉 Find out more about our training courses : https://astreefaculte.fr

Marc Lafin - Student lawyer