Pôle Finance is a French-speaking portal that aggregates analyses, briefs, and reports covering banking, insurance, asset management, and regulatory compliance. Following its updates allows one to spot shifts in the French financial sector before they translate into portfolios or obligations of institutions.
Anti-money laundering regulation: what the European AML package changes for France
The AMLR regulation (EU 2024/1624) fundamentally reshapes the framework for combating money laundering and terrorist financing. Its full application is scheduled for July 10, 2027, but the ramp-up has already begun in 2025-2026 with the establishment of the AMLA, the new European authority based in Frankfurt.
Starting in 2028, the AMLA will exercise direct supervision over cross-border entities or those deemed high-risk. For French institutions, this means a duplication of controls: the ACPR retains its national prerogatives while an additional European layer is superimposed.
Two concrete measures deserve the attention of wealth and management professionals. The first is the uniform limitation of cash payments to 10,000 euros across the Union. The second concerns a possible reduction of the beneficial ownership threshold from 25% to 15% for certain high-risk sectors, notably real estate and some investment structures. KYC (know your customer) obligations are mechanically broadened as a result.
By following the news on Pôle Finance, professionals can anticipate regulatory deadlines rather than facing them in the last quarter before they come into effect.
Crypto-assets and MiCA: the end of the transitional regime in France
The MiCA regulation (EU 2023/1114) has been fully applicable to crypto-asset service providers since December 30, 2024. France has transposed this framework through ordinance n° 2024-936 of October 15, 2024, supplemented by ordinance n° 2024-937 which strengthens AML-CTF requirements on crypto-asset transfers.
Specifically, the former PSANs registered with the AMF must transition to the status of PSCA (crypto-asset service provider) or risk losing their approval. This transition entails increased requirements regarding capital, internal governance, and the segregation of client assets.
For individual investors, the change translates into better theoretical protection. For platforms, it imposes significant compliance investments. Several smaller players may not survive this standardization, which would concentrate the market around more capitalized operators.
Points of vigilance for investors
- Check that the platform used has obtained PSCA approval from the AMF, and not just the now-defunct former PSAN registration.
- Ensure that the crypto-assets held are kept in segregated accounts, separate from the platform’s own funds.
- Monitor communications from the AMF and ACPR, which regularly publish blacklists of unauthorized actors operating from abroad.
Transformation of banking jobs and decline in hiring
The French banking sector is undergoing a phase of structural transformation. Hiring is declining while jobs are evolving due to the combined effects of digitalization, regulatory pressure, and the compression of intermediation margins.
Compliance and risk management functions are absorbing an increasing share of recruitment, at the expense of agency positions. The sought-after profiles are evolving towards hybrid skills: regulatory knowledge coupled with mastery of data analysis tools.
This transformation is also changing the structure of compensation. Regulatory developments, notably the CRD directives and EBA guidelines on variable remuneration, are reshaping salary scales in market and control functions. An experienced compliance analyst can now claim compensation levels comparable to those of a corporate account manager, which would have seemed unlikely a few years ago.
Cost of risk and banking results: signals to watch in France
Growth is holding up in the French banking sector, but the cost of risk is rising. This increase reflects the gradual deterioration in the quality of certain credit portfolios, particularly in commercial real estate and financing for SMEs most exposed to past rate hikes.
For investors tracking listed banking stocks in Paris, the cost of risk ratio on outstanding loans is becoming a more discriminating indicator than net banking income. Two institutions showing comparable growth in their net banking product may exhibit very different risk trajectories depending on the composition of their loan portfolio.
Three metrics to follow in quarterly publications
- The provisioning rate for doubtful receivables, which signals the management’s caution (or optimism) regarding expected defaults.
- The evolution of the CET1 ratio, an indicator of capital solidity, particularly scrutinized by the ACPR and the ECB.
- The share of income from fees compared to interest income, which measures the institution’s ability to diversify its sources of profitability.
The French financial sector is entering a phase where European regulation (AML package, MiCA, prudential standards) imposes compliance investments that weigh on margins in the short term but structure the market in the medium term. Actors who integrate these constraints early gain a sustainable competitive advantage over those who wait for the last deadlines to adapt.
