Lack of AML/CFT Due Diligence Awareness Among French Financial Clients, Says CCSF

The Consultative Committee of the Financial Sector (CCSF), a body affiliated with the Banque de France consisting of representatives from private entities and qualified persons, released a report on May 6, 2025, that focuses on how customers view AML/CFT regulations and the related difficulties financial institutions face in carrying them out.

The title of the CCSF report was “How Do Financial Institutions’ Customers Receive Regulatory Obligations?” which reflects the growing need to minimize the knowledge gap between the comprehension of clients and regulatory requirements.

The body also makes 16 recommendations, separated into five categories, to help improve the situation.

This report, which is based on interviews with financial industry officials, regulators, and supervisory agencies, as well as a survey of a panel of consumers, emphasizes the importance of knowledge and comprehension of these topics.

According to the CCSF’s interviews and study, clients have a widespread lack of awareness of AML/CFT. 63% of those surveyed said they were completely unfamiliar with this issue and the obligations associated with it.

As a direct outcome, 39% of those questioned felt that queries about KYC obligations looked intrusive or improper.

While customer complaints about the requirements appear to be few, the lack of signs for assessing dissatisfaction with these requests makes measuring the issue challenging.

On the corporate side, however, the research highlights inaccuracies highlighted by representatives of specific professions, particularly when it comes to defending transactions.

The report also highlighted the frustrations with inconsistent methods that are frequently occurring and resulting in the accessibility of the same information on multiple media, requests that are often misinterpreted, or judgments assessed as unjustifiable by customers.

On behalf of regulated institutions, the research notes challenges in conducting due diligence processes. The survey also emphasizes the limits faced by both taxable individuals and PPE clients.

Institutions find issues recognizing PPE family members, whilst consumers note irregularities in the requests they may get, as well as payment method blockages and prolonged delays in obtaining finance for no apparent reason.

This proactive approach will be essential given that the new AML package from the European Union is scheduled to go into effect by 2027.

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The CCSF has put up 16 appropriate recommendations that are centered on improving communication, spreading awareness, simplifying data collection, and enhancing training both at the institutional level and among the institutions liable for AML/CFT.

The development of a shared and safe platform for KYC data is one important suggestion that might expedite the collection and updating of client data.

This project supports the broader perspective of guaranteeing the efficacy of AML/CFT laws while also making them easier for customers to comprehend and less disruptive.

The CCSF has encouraged clear communication and detailed training, both for employees who are directly responsible for this and at the state level, by incorporating AML-CFT principles into the national financial education policy.

Reportedly, the CCSF report emphasizes how crucial it is to follow AML/CFT laws and to properly explain their importance to the general public or customers.

The financial institutions can improve the overall efficacy of anti-financial crime initiatives while forging closer bonds with their constituents by matching the regulatory procedures with the demands and concerns of their customers.