Saint-Tropez Real Estate Sector Under AML-CTF Scrutiny by DGCCRF

In March 2025, the General Directorate for Competition, Consumer Affairs and Fraud Control (DGCCRF) carried out unannounced inspections of 13 luxury real-estate professionals in Saint-Tropez and nearby areas.

Investigators from the DGCCRF’s National Investigation Service (SNE), together with teams from the Departmental Directorates for the Protection of Populations (DDPP) in Var and Alpes-Maritimes, conducted a three-day on-site assessment.

It was analyzed whether these high-risk agencies were fulfilling their pre-transaction vigilance obligations under French law.

This targeted campaign follows a Financial Action Task Force (FATF) recommendation to intensify AML-CTF inspections with an emphasis on asset-freezing measures. Similar operations have taken place in the areas of southern France, Savoie, Saint-Barthélemy, and Paris.

Investigators also checked whether these agencies had robust client identification processes that include ultimate beneficial owner verification for legal entities and staffed training programs covering AML/CTF responsibilities.

They further examined the internal protocols regarding the reporting of suspicious transactions to TRACFIN, tested asset-freezing procedures, and reviewed mechanisms for notifying the Directorate General of the Treasury about asset misappropriation.

Saint-Tropez has a high-end market which attracts cross-border investment from foreigners that making it vulnerable to the large financial flows and asset-freezing orders under international sanctions, particularly in light of the Ukraine conflict and European sanctions.

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The analysis suggests that the DGCCRF will issue formal orders requiring urgent corrective action and refer non-compliant agencies to the National Sanctions Commission (CNS) based on any breaches identified.

As per the press release of DGCCRF, they aim to eliminate the compliance gaps exploited by scammers and reinforce France’s adherence to global AML-CTF standards.