French banks may ask for more documents

A French bank may request documents from clients living abroad regarding their tax residence, income, or certain financial transfers. These requests are part of efforts to ensure compliance with regulations and to prevent misuse of banking services.

Guide provides details for affected clients

A guide from the Direction générale du Trésor, published on October 29, explains the checks and procedures for clients affected by these requirements. It is aimed at French citizens living outside of France to help them understand the steps they need to take when their banking activities are affected.

Checks apply to various situations

The situations that may trigger document requests go beyond large international transfers. A change of address, new tax residence, inheritance, or unusual financial activity can lead to additional documentation being required. This includes people who pay expenses in France from abroad, who should update their bank information as a precaution.

Obligations to know customers and prevent fraud

Financial institutions must comply with ongoing obligations to know their customers and to combat money laundering, terrorist financing, and tax fraud. These checks focus on identity, country of residence, tax status, professional activity, and the source of funds.

Expatriates face multiple regulatory frameworks

The situation of an expatriate may be subject to several fiscal and regulatory frameworks. Depending on the country of residence, restrictions may affect access to certain investments or banking services. The Treasury recommends informing the bank of any changes in address or tax status and checking which products will remain available.

New rules will apply in 2027

The European framework will change in July 2027 with the implementation of new anti-money laundering rules. Financial institutions will need to collect more information and update it more frequently, sometimes every year. These new rules are upcoming, but current compliance obligations are already in effect.

Document requests may delay transfers

A check can delay a transfer until the requested explanations are received. If the client's file is incomplete or outdated, some banking functions may be temporarily restricted. Updating the information usually lifts these restrictions.

Account closure requires notice period

The closure of an account is a separate situation. The Treasury notes that banks must generally respect a notice period, usually two months, unless specific provisions apply. Repeated failure to respond to compliance requests may lead to the termination of the banking relationship.

Disagreements with the bank should be addressed first with advisors

If a client disagrees with a bank’s actions, the first point of contact should be the bank advisor. If the issue persists, the client can submit a written complaint to the institution’s relevant service, keeping a record of all exchanges and documents. If the conditions are met, the banking mediator can be contacted for a free resolution.

Right to a basic banking account exists for those refused

A French citizen living abroad who is refused the opening of an account can request the right to a basic banking account through the Bank of France. This can designate an institution to provide essential banking services, provided legal conditions and required documents are met.

Preparation before leaving France is advised

Before moving abroad, the Treasury recommends checking the future use of payment methods, downloading statements, and keeping copies of identity documents. During the stay, responding to update requests and keeping records of important transfers can help limit service interruptions.