Doing Business In (Insert Country Name Here) - BNA

secured and non-secured overdrafts. Commercial banks also assist in public offerings
of shares and corporate debt, as well as mergers, acquisitions and takeovers. Banks
also offer hedging against interest rate and currency fluctuations. France also has 161
foreign banks; some have sizeable branch networks.
The Bank of France ("Banque de France") is a member of the European System
of Central Banks (ECSB) and the Banque de France's governor sits on the executive
board of the European Central Bank. The Banque de France introduced Eurodenominated
banknotes and coins in January 2002, completing
the transition to the Euro, and eliminating the French franc.
The Banque de France participates in the regulation and supervision of the French
banking and financial system. Its governor is the chair of the Committee on Credit
Institutions, which grants or withdraws banking licenses. The governor is also president
of the Banking Commission, which ensures that banks adhere to banking regulations.
The system also includes two consultative committees, the Committee on Financial
Regulation, and the Financial Sector Consultative Committee.
The French government has sold its majority equity stakes in major banks and insurance
companies. However, it retains ownership of the Caisse des Dépôts et Consignations
and minority stakes in several major financial institutions. The French postal service, La
Poste, an independent public entity, holds 10 percent of the French financial services
market. La Poste has created its own bank “La Banque Postale,” which in 2006
acquired the status of a regular bank.
Foreign-Exchange Controls Return to top
As part of the international effort to combat money laundering and the financing of
terrorism, France's banking regulations have undergone several changes, which affect
the handling of checks, as recommended by the Financial Action Task Force
[http://www.fatf-gafi.org]. France sometimes uses its powers under national law to
execute asset freeze orders against terrorists, as well as operating within EU structures.
In general, all inward and outward payments must be made through approved banking
intermediaries by bank transfers.
Repatriation of Capital and Earnings:
There is no restriction on repatriation of capital provided this is carried out through an
approved bank and the investment in question was authorized.
Similarly, there is no restriction on transfers of profits, interest, royalties, or service fees,
provided the investment was authorized and made through approved banks.
Businesses:
Foreign-controlled French businesses are required to have a resident French bank
account and are subject to the same regulations as other French legal entities. The use
of foreign bank accounts by residents is permitted.
2/15/2008 Country Commercial Guide for France 125
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