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AML/CFT: what an inspection checks in a firm or notarial office

Writer: Alexandre KOERFER
Alexandre KOERFER
9 hours ago
6 min read
Shelves of colourful ring binders in an office

Lawyers (avocats), chartered accountants (experts-comptables) and notaries are subject to anti-money laundering and counter-terrorist financing (AML/CFT) obligations, set out in Articles L. 561-2 et seq. of the French Monetary and Financial Code (Code monétaire et financier). An inspection is not concerned with intentions. It asks for dated documents, client files and proof that procedures are actually applied.

For lawyers, the obligations cover only certain activities, listed in paragraph I of Article L. 561-3: taking part, on the client's behalf, in a financial or property transaction, trusts (fiducie), assistance with the purchase or sale of real estate or businesses, management of funds or assets, the formation or management of companies, and tax advice [1]. Chartered accountants and notaries are subject to them across their practice, with standards and tools specific to each profession [2][3].

The written foundation: risk mapping, risk classification, procedures

The first document requested is the risk assessment, supported by written procedures.

  • The risk map of the firm or notarial office. It ranks risks on the basis of threat and vulnerability, and must be updated regularly [1].

  • The risk classification (Article L. 561-4-1). It sets the risk level of each business relationship, so that due diligence can be adjusted accordingly [1]. The chartered accountants' standard uses four criteria: clients, business activity, location and engagements [2]. The tool developed by the Conseil supérieur du notariat (CSN, the French national council of notaries) assesses four categories: service, transaction, client and geographical area [3].

  • Written internal procedures (Article L. 561-32). They cover the detection of suspicious transactions, identification of the client and the beneficial owner, analysis of the nature of the transaction, and internal control [1][2].

Each profession also expects a clearly identified person in charge. The guide published by the Conseil national des barreaux (CNB, the French national bar council) refers to an AML/CFT officer [1]. The chartered accountants' standard provides for an internal control officer [2]. The notarial profession recommends a designated officer, preferably one of the notaries, and a procedure that is updated as soon as a new risk emerges [3].

The client, due diligence and record-keeping

The inspector then opens client files. They check that due diligence is documented and consistent with the risk level assigned.

  • Identification of the client and the beneficial owner before entering into the business relationship (Articles L. 561-5 and L. 561-2-2) [1]. For chartered accountants, this takes place before the engagement letter is signed, including a search of the register of beneficial owners for companies registered in France [2].

  • Simplified due diligence: permitted only where the risk is low, provided this is justified (Article L. 561-9) [1].

  • Additional or enhanced due diligence (Articles L. 561-10 et seq.): politically exposed persons, transactions linked to countries listed by the FATF (Financial Action Task Force) or the European Union, and transactions that are complex, unusually large or without any apparent economic rationale. The origin and destination of the funds, the purpose of the transaction and the identity of the beneficiary must then be obtained and recorded in writing [1].

  • Ongoing due diligence throughout the relationship, with information kept up to date [2][3].

  • If due diligence cannot be carried out, the engagement is not performed [2].

Documents are retained for five years from the end of the business relationship (Article L. 561-12) [1]. Suspicious transaction reports are kept separately, outside the client file [2][3]. Finally, Article L. 561-34 requires lawyers and all staff to be trained [1].

Suspicious transaction reports: three separate channels

The channel depends on the profession.

  • Lawyers: the report is sent to the bâtonnier (the head of the local bar), who checks that it complies with the legislation before forwarding it to Tracfin (the French financial intelligence unit). A lawyer acting as fiduciary (trustee) reports directly to Tracfin [1].

  • Notaries: each notary reports to Tracfin personally, via the ERMES platform. A member of staff cannot file a report themselves [3].

  • Chartered accountants: the person in charge of the engagement files the report. The firm appoints a Tracfin correspondent no later than at the time of its first report; failing that, the legal representative is deemed to perform this role [2].

In tax fraud matters, a report is required only if one of the criteria in Article D. 561-32-1 is met [1]. In all cases, disclosing the existence or content of a report is prohibited [3].

Volumes remain highly uneven. According to Tracfin's 2025 activity and impact report, notaries submitted 6,590 reports (+64%), chartered accountants 1,197 (+66%), lawyers 38 and the CARPA (the bars' client-funds settlement bodies) 83. Tracfin considers lawyers' reporting activity 'too low' given their numbers, and notes that supporting documents, particularly identification documents, are often missing [6].

Who inspects, and what is examined

Article L. 561-36 entrusts supervision to the professional bodies. For lawyers, this is the bar council (conseil de l'ordre), which may be assisted by the CNB. For notaries, it is the chambres des notaires (regional chambers of notaries), which may be assisted by the Conseil supérieur du notariat. For chartered accountants, it is the Ordre des experts-comptables (the French institute of chartered accountants). These authorities publish an annual report on their supervisory and disciplinary activities [4].

The 2025 AML/CFT report of the Avignon bar, published in March 2026, illustrates an inspection checklist applied both to documents and on site. The points examined were as follows [5]:

  • appointment of an AML/CFT officer;

  • existence and updating of the internal risk map;

  • classification of risks by type of client and transaction;

  • engagement acceptance and due diligence procedures;

  • training of the lawyer and staff;

  • consistency of the due diligence performed with the file;

  • retention of information for five years.

For chartered accountants, the profession's framework provides for the professional bodies to monitor these arrangements during quality reviews, and the firm must be able to justify its measures at the request of the supervisory authority [2].

What changes by 2027

Regulation (EU) 2024/1624 of 31 May 2024, the centrepiece of the EU anti-money laundering package, applies from 10 July 2027 [8]. As it is directly applicable, internal procedures will need to be reviewed in the light of this text.

For lawyers, on 12 December 2025 the CNB adopted a draft text creating a pooled national supervisory commission, then adjusted it following discussions with the DACS (the Ministry of Justice's directorate of civil affairs) and the DG Trésor (the French Treasury) [7]. The draft is based on a mandatory assessment diagnostic. The inspector may not belong to a bar within the jurisdiction of the court of appeal concerned, and the bar council will remain solely competent to decide on any follow-up. The CNB is calling for the text to be published 'as soon as possible', ahead of the FATF's next evaluation [7].

Our recommendations

  • Date your risk map and risk classification, keep them up to date and retain successive versions.

  • Check, on a sample of recent files, that identification of the client and the beneficial owner does take place before the business relationship begins.

  • Record in writing every decision to apply simplified or enhanced due diligence, together with its justification.

  • Keep a register of the AML/CFT training completed by each partner and each member of staff.

  • Draft an internal memo on the reporting channel specific to your profession and on the person designated as officer or correspondent.

To take initial stock of your arrangements ahead of an inspection, you can request the free diagnostic offered by Tao Sense.

Sources

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