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© 2005 International Monetary Fund

May 2005

IMF Country Report No. 05/186

France: Financial Sector Assessment Program—Detailed Assessments of Observance of Standards and Codes including Banking Supervision, Insurance Regulation, Securities Legislation, Monetary and Financial Policy Transparency, Payments Systems, Securities Settlement, and Anti-Money Laundering and Combating the Financing of Terrorism

These Detailed Assessments of Observance of Standards and Codes on France were prepared by a staff team of the International Monetary Fund as background documentation for the Financial Sector Assessment Program with the member country. It is based on the information available at the time it was completed in April 2005. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of France or the Executive Board of the IMF.

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Front Matter Page

Financial Sector Assessment Program

France

Detailed Assessment of Observance of Standards and Codes

April 2005

International Monetary Fund

Monetary and Financial Systems Department

Contents

• Glossary

• I. Compliance with the Basel Core Principles for Effective Banking Supervision

  • General

  • Information and methodology used for assessment

  • Market structure overview

  • Preconditions for effective banking supervision

  • Principle-by-principle assessment

  • Recommended action plan and authorities’ response to the assessment

• II. Observance of the IAIS Insurance Core Principles

  • General

  • Information and methodology used for assessment

  • Institutional and macro prudential setting—overview

  • General preconditions for effective insurance supervision

  • Principle-by-principle assessment

  • Recommended action plan and authorities’ response to the assessment

• III. Observance of the CPSS Core Principles for Systemically Important Payment Systems

  • General

  • Information and methodology used for assessment

  • Institutional and market structure—Overview

  • Payment systems infrastructure

  • Assessment of observance of the CPs by the TBF

  • Recommended action plan for the TBF

  • Assessment of observance of the CPs by the PNS

  • Recommended action plan for the PNS

  • Assessment of observance of the CPs by the SIT

  • Recommended action plan for the SIT

  • Assessment central bank responsibilities in applying the CPs

  • Recommended action plan on central bank responsibilities

  • Authorities’ response to the assessment

• IV. Implementation of the IOSCO Objectives and Principles of Securities Regulation

  • General

  • Information and methodology used for assessment

  • Institutional and macroprudential setting, market structure

  • Description of regulatory structure and practices

  • General preconditions for effective securities regulation

  • Principle-by-principle assessment

  • Recommended actions and authorities’ response to the assessment

• V. Observance of the CPSS/IOSCO Recommendations for Securities Settlement Systems

  • General

  • Scope of the assessment

  • Institutional and market structure

  • Description of regulatory structure and practices

  • Information and methodology used for the assessment

  • Assessment against the CPSS/IOSCO recommendations for securities settlement systems

  • Recommended action plan and authorities’ response to the assessment

• VI. Observance of the IMF Code of Good Practices on Transparency in Monetary and Financial Policies

  • A. Introduction

  • B. Transparency of Banking Supervision

    • Practice-by-practice assessment

    • Recommended action plan and authorities’ response to the assessment

  • C. Transparency of Deposit Insurance

    • Practice-by-practice assessment

    • Recommended action plan and authorities’ response to the assessment

  • D. Transparency of Insurance Supervision

    • Practice-by-practice assessment

    • Recommended action plan and authorities’ response to the assessment

  • E. Transparency of Payment and Settlement Systems Oversight

    • Practice-by-practice assessment

    • Recommended action plan and authorities’ response to the assessment

  • F. Transparency of Securities Regulation and Supervision

    • Practice-by-practice assessment

    • Recommended action plan and authorities’ response to the assessment

• VII. Compliance with the FATF Recommendations for Anti–Money Laundering and Combating the Financing of Terrorism

  • A. General

    • Information and methodology used for the assessment

    • General situation of money laundering and financing of terrorism

    • Overview of measures to prevent money laundering and terrorism financing

  • B. Main Findings

    • Criminal justice measures and international cooperation

    • Preventive measures for financial institutions

  • C. Detailed Assessment

    • Assessing Criminal Justice Measures and International Cooperation

    • Assessing Preventive Measures for Financial Institutions

    • Description of the Controls and Monitoring of Cash and Cross Border Transactions

  • D. Ratings of Compliance with FATF Recommendations, Summary of Effectiveness of AML/CFT Efforts and Recommended Action Plan

  • E. Authorities’ Response to the Assessment

• Tables

• 1. Detailed Assessment of Compliance of the Basel Core Principles

• 2. Summary Compliance of the Basel Core Principles

• 3. Recommended Action Plan to Improve Compliance of the Basel Core Principles

• 4. Detailed Assessment of Observance of the IAIS Insurance Core Principles

• 5. Summary Observance of IAIS Insurance Core Principles

• 6. Recommended Action Plan to Improve Observance of IAIS Insurance Core Principles

• 7. Detailed Assessment of Observance by the TBF of CPSS Core Principles for SIPS

• 8. Summary Observance of TBF of the CPSS Core Principles

• 9. Recommended Actions to Improve Observance of TBF of the CPSS Core Principles

• 10. Detailed Assessment of Observance of Paris Net Settlement System (PNS) of the CPSS Core Principles for SIPS

• 11. Summary Observance of PNS of the CPSS Core Principles

• 12. Recommended Actions to Improve Observance of PNS of the CPSS Core Principles

• 13. Detailed Assessment of Observance of Système Interbancaire de Télécompensation (SIT) of CPSS Core Principles for SIPS

• 14. Summary Observance by SIT of the CPSS Core Principles

• 15. Recommended Actions to Improve Observance by SIT of the CPSS Core Principles

• 16. Detailed Assessment of the Responsibilities of BdF in Applying the Core Principles

• 17. Summary Observance of the Central Bank Responsibilities in Applying the CPs

• 18. Recommended Actions to Improve Observance of the Central Bank Responsibilities in Applying the CPs

• 19. Stock Market Capitalization

• 20. Detailed Assessment of Observance of the IOSCO Objectives and Principles of Securities Regulation

• 21. Summary Implementation of the IOSCO Objectives and Principles of Securities Regulation

• 22. Recommended Plan of Actions to Improve Implementation of the IOSCO Objectives and Principles of Securities Regulation

• 23. Trades Settled in Euroclear France’s Securities Settlement Systems

• 24. Detailed Assessment of Euroclear France as a Central Securities Depository and the RGV2-Irrevocable Trade for Trade Settlement System operated by Euroclear France of CPSS/IOSCO Recommendations for Securities Settlement Systems

• 25. Summary Observance of Euroclear France as a Central Securities Depository and of the RGV2 irrevocable Trade for Trade channel operated by Euroclear France of the CPSS/IOSCO recommendation for Securities Settlement Systems

• 26. Recommended Actions to Improve Observance of Euroclear France and the RGV2 of CPSS/IOSCO Recommendations for Securities Settlement Systems

• 27. Detailed Assessment of Relit+, the Multilateral Netting Scheme for the Clearing and Settlement of Stock Exchange and OTC Securities Transactions of the CPSS/IOSCO Recommendations for Securities Settlement Systems

• 28. Summary Observance of Relit+ of the CPSS/IOSCO Recommendations for Securities Settlement Systems

• 29. Recommended Actions to Improve Observance of Relit+ of the CPSS/IOSCO Recommendations for Securities Settlement Systems

• 30. Detailed Assessment of Observance of IMF’s MFP Transparency Code—Banking Supervision

• 31. Summary Observance of IMF’s MFP Transparency Code—Banking Supervision

• 32. Recommended Action Plan to Improve Observance of IMF’s MFP Transparency Code Practices—Banking Supervision

• 33. Detailed Assessment of Observance of IMF’s MFP Transparency Code—Deposit Insurance

• 34. Summary Observance of IMF’s MFP Transparency Code—Deposit Insurance Supervision

• 35. Recommended Action Plan to Improve Observance of IMF’s MFP Transparency Code Practices—Deposit Insurance Supervision

• 36. Detailed Assessment of Observance of IMF’s MFP Transparency Code—Insurance Supervision

• 37. Summary Observance of IMF’s MFP Transparency Code—Insurance Supervision

• 38. Recommended Action Plan to Improve Observance of IMF’s MFP Transparency Code Practices—Insurance Supervision

• 39. Detailed assessment of Observance of IMF’s MFP Transparency Code Practices—Payment and Settlement Systems (November 2003 update)

• 40. Summary Observance of IMF’s MFP Transparency Code Practices–Payment and Settlement Systems

• 41. Recommended Actions to Improve Observance of IMF’s MFP Transparency Code Practices—Payment and Settlement Systems

• 42. Detailed Assessment of Observance of IMF’s MFP Transparency Code Practices—Transparency of Securities Regulation

• 43. Summary Observance of IMF’s MFP Transparency Code—Securities Regulation

• 44. Recommended Action Plan to Improve Observance of IMF’s MFP Transparency Code Practices—Securities Regulation

• 45. Detailed Assessment of Criminal Justice Measures and International Cooperation

• 46. Detailed Assessment of the Legal and Institutional Framework for Financial Institutions and its Effective Implementation

• 47. Description of the Controls and Monitoring of Cash and Cross Border Transactions

• 48. Ratings of Compliance with FATF Recommendations Requiring Specific Action

• 49. Summary of Effectiveness of AML/CFT Efforts

• 50. Recommended Action Plan

Glossary