FRANCE Law and Practice Contributed by: Damien Luqué, Martin Jarrige de la Sizeranne and Sacha Tartarin, Lacourte Raquin Tatar
FGDR Organisation The FGDR is managed by an executive board and a supervisory board. The executive board defines the FGDR’s organisation and manages its activities. The supervisory Board has the power to appoint and remove members of the executive board, approve the year-end financial statements, draft the FGDR’s internal regula - tions, etc. FGDR Funding The FGDR is funded by its members through their contributions. All companies licensed by the ACPR as credit institutions, investment firms, financing companies, as well as financial holding companies and mixed financial holding companies must be members of the FGDR for the deposit guarantee scheme. Contributions are calculated using a method established by the ACPR after consulting the FGDR’s supervisory board. However, the total amount of contributions is determined by the FGDR’s supervisory board, based on a propos - al from the executive board and following the assent of the ACPR. Four types of instruments can be used by FGDR’s members as contribution to the scheme: • premiums; • member’s certificates; • certificates of membership; and • collateralised payment commitments. Covered Depositors and Deposits The French deposit guarantee scheme covers all credit institution customers, including individu - als, whether minors or adults, individual entre- preneurs, associations and companies.
adequate monitoring of AML/CFT risks. This involves having three distinct and independent levels of control composed of an operational controls line, an efficient risk management and compliance function, as well as an independent internal audit function. Such controls are designed to: • identify emerging risks factors; • review AML/CFT measures; and • define specific criteria and thresholds for AML/CFT deficiencies. Credit institutions must have sufficient human resources to analyse the deficiencies identified and ensure that the staff assigned to AML/CFT monitoring have the appropriate experience, qualifications, training and hierarchical position to carry out their duties. To organise the AML/CFT monitoring function, an AML/CFT manager must be appointed. The AML/CFT manager must report to the manage - ment body any deficiencies and actions related to AML/CFT. The credit institution’s ultimate responsibility for the implementation and effectiveness of policies and controls regarding AML/CFT must fall within the management body’s competence. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) The French Deposit Insurance and Resolution Fund ( Fonds de Garantie des Dépôts et de Résolution – FGDR) is the body responsible for the protection of customers’ deposits and the management of the French deposit guarantee scheme.
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