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Legal and compliance analysis of the Sonantes currency in France

Organisation: Credit Municipal de Nantes

Introduction This guidance document describes the impact of relevant laws and regulations in France on the Sonantes community currency. Legal and compliance issues with regard to the relevant in-country laws and regulations are analyzed so that future currency projects can benefit from this knowledge and avoid risks at implementation. This document is part of a wider package of legal and compliance documents that can be found on the Community Currency Knowledge Gateway at http://community-currency.info/en/find/cc-toolkits/legal-and-compliance/

 

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Disclaimer This document only offers an overview of the legal landscape that this complementary currency operates within and nothing contained in this document should be considered legal advice.

This report has been compiled and verified by Qoin as part of the Community Currencies in Action (CCIA) collaboration project. CCIA is a transnational partnership project designing, developing and implementing community currencies across northwest Europe. The partnership provides a rigorously tested package of support structures to facilitate the development of currency initiatives across NWE, promoting them as credible policy vehicles. Running from May 2012 to June 2015, CCIA is part-funded through the INTERREG IVB North West Europe Programme, a financial instrument of the European Union’s Cohesion Policy ‒ Investing in Opportunities.

Find out more about CCIA on our website: www.communitycurrenciesinaction.eu

 

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Introduction This guidance document describes the impact of relevant laws and regulations in France on the Sonantes community currency. Legal and compliance issues with regard to the relevant in-country laws and regulations are analyzed so that future currency projects can benefit from this knowledge and avoid risks at implementation. Each chapter is divided in main and sub legal topics. An explanation is given for each main and sub topic. For each legal topic a description is given about how its relevant to the Sonantes currency project. Preamble - NANTES observations 1 – We have collaborated with Celina Whittaker to provide responses at our level. Our contribution should be aligned with that obtained directly by NEF from Marie Fare or Jérome Blanc. Indicate as required: ShareLex 2 – Context

With the rise in the number of currencies, we expect a considerable explosion of legal guidelines in France.

The ACPR, independent French banking and insurance supervisory authority, part of the Banque de France (French state bank) is starting to react to these initiatives.

Created by order dated 21 January 2010 and instituted in March 2010, the ACP, converted into the ACPR by the law on separation and regulation of banking activities, resulted from the combination of the approval (CEA - Committee of insurance companies - and CECEI - Committee of lending institutions and investment companies) and regulatory (Banking Commission and ACAM -Authority supervising private insurance companies) authorities of the banking and insurance sectors.

It was created to establish a strong supervisory authority with an overall view of the financial sector (banking and insurance).

The ACPR approves and supervises banking institutions and insurance entities.

Its principal purpose is to ensure the preservation of financial stability and the protection of bank customers, insurance policyholders and beneficiaries.

It also represents France internationally in these matters.

As regards local currencies, the ACPR has recently concerned itself with these initiatives. It has expressed its point of view:

- at meetings in its premises, with representatives of Complementary Local Currencies (e.g., Sol Violette, SoNantes);

- in an article in the ACP journal in October 2013; - in a 2013 –I 13 instruction.

Legal Topics 1. Taxation

 

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Tax authorities and regulators can consider community currencies to be a means by which individuals and companies can more easily escape the tax implications of the transactions that they engage in. It is therefore vital that any community currency seeks to mitigate these legitimate concerns by addressing the impact on VAT, Corporation tax and Income tax of individuals and companies using the scheme. For example, in the Netherlands a ruling has been obtained from the tax authorities that currency earned through social currency schemes are not taxed up to the equivalent of a maximum annual remuneration of volunteers up to €1500. However the situation varies in the different NWE countries and for some similar policies are yet to be. A further challenge is designing a calculation model which allows for computing equivalent legal tenders for currencies that are circulated on a completely different basis such as ‘hours’. To maintain the integrity of the community currency programs CCIA will do an in-depth risk analysis to understand how to mitigate the possibility of users avoiding paying all the tax due to the authorities. An initial assessment is, that social currencies (e.g. Timebanking, loyalty schemes etc.), due to their relatively limited scale in terms of individual balances and individual earnings, and spending opportunities, in general have a low risk of tax avoidance by users. For currencies in the professional/b2b mutual credit and legal backed tender, where the potential risks are higher, measures have already been implemented to verify the identity of participants when they enter the scheme. 1.1 Value Added Tax (VAT) SoNantes is a currency complementary to the Euro and not alternative to it. On the basis that 1 “SoNantes" = 1 “Euro" and that SoNantes are neither reconvertible nor exchangeable into euros, the “Complementary Currency of Nantes” must be considered as an instrument of exchange between individuals or businesses, steered and managed by the dedicated subsidiary of the Crédit Municipal (called SoNao), notwithstanding that private individuals may open an account in SoNantes by first exchanging euros for SoNantes with the local currency management institution.

Therefore, each user of the “Local currency” will hold a bank account in this institution.

Means of payment: transfers from account to account by Internet or Smartphone, use of media such as “bank cards, text messages, etc.," will enable exchanges between the holders of these accounts.

For financial administrative purposes, invoices will continue to be issued in euros, but they could be paid by using an account in “SoNantes”, which each party to the financial exchange would have to hold.

The consequences for economic entities are therefore relatively minor, with:

• identical invoicing, only the payment procedure involving an additional process; • creation of another account, which, to begin with, would be a type 467 sundry

debtors' account or similar rather than a class 5 account (french accounting standard'(Chart of Accounts)

• http://www.anc.gouv.fr/cms/accueil/normes-francaises/plan-comptable.html), since SoNantes cannot be assimilated to an exchange currency equivalent to the Euro;

• creation of a “SoNantes” accounts ledger, recording exchange transactions between accounts for clients/suppliers/salaries due, etc. with the 467 “SoNantes” account (held with the Crédit Municipal institution).

The consequences for the administrative, accounting and fiscal organisation of economic agents:

 

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! invoices being issued, the operation of cash registers is not affected by the establishment of the "Local currency”

" these documents are issued in euros etc., while only payment procedures involve the local currency;

! accounting entries relating to this currency come within the normal bookkeeping of economic agents;

! it does not affect the application of commercial taxes (VAT, corporation tax), which are always stated in euros.

Is the local currency neutral for VAT? Yes. 1st principle:

Invoices are issued and recorded in euros. The local currency is only a means of payment.

VAT is therefore recorded and paid in euros. The taxpayer must retain funds in euros

for paying VAT. 2nd principle

Payment in local currency (UCI) accords with the fiscal status applicable to the economic entity.

Therefore: # if VAT is applied to debits (on the issue of invoices), the VAT due will be paid for

the month of invoicing, whatever the mode of payment; # if VAT is applied to receipts (normal scheme): " Note: ! payment in local currency is equivalent to a receipt and generates a debt for the

VAT concerned, to be paid in respect of the month concerned; " the company must therefore have funds in euros for paying the VAT;

# if VAT is applied to receipts (simplified scheme) for artisan traders:

! this has no effect on the level of the quarterly instalments, which remain in euros,

etc., but the required amount -must be available in euros for effecting the payment. How does this sub topic impact the 4 CCIA currency types in your country in the broader sense (Output 2. Country coordinators: Please contact the CCIA partners, observers (coordinated by nef) and other specialized organisations to coordinate the proper completion of this section): [ Please insert partner response. No space restriction ] Links to original law texts and contact details regulatory authorities relevant for this sub topic: [ Please insert partner response. No space restriction ]

 

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1.2 Corporation tax SoNantes: same answer as for VAT. SoNantes is a currency complementary to the Euro and not an alternative to it. The company must have funds available in euros for the payment of corporation tax. 1.3 Income tax Companies may use local currency for paying part of their employees' salaries, bonuses or for particular items (for example, payment for public transport).

This means that companies transfer purchasing power in Nantes currency to their employees without creating any additional purchasing power. SoNantes is a local currency complementary to the euro and not alternative to it.

The employees of participating companies, with their formal agreement, will be provided with a SoNantes current account in local currency and one or more means of payment enabling them to use the local currency with all the economic entities participating in the circuit.

Of course, payment in local currency is and will only be a complementary mode of payment. All social security and fiscal charges will continue to be paid in euros. As the Complementary Currency is only an alternative method of paying part of the net salary, the methods for calculating charges need not be changed.

In no circumstances will taxable income be assessed in SoNantes. As it is paid in euros, it is not affected by a partial payment of transactions in SoNantes. The payment of some remuneration in SoNantes has no effect on income tax. SoNantes should be included in any calculation of overall income.

In France the companies declare all they give to an employees and their employees receive a wage slip including the part paid in Sn and the part paid in €.

Links to original law texts and contact details regulatory authorities relevant for this sub topic: [ Please insert partner response. No space restriction ] At the moment (10/1/2014), we have no laws in France authorising or prohibiting the payment of income tax in local currency. In informal exchanges with representatives of the Trésor Public (Economic and Finance Ministry), the position is unchanged: no national taxes can be paid in local currency. The exchanges between SoNantes and the ACPR and the Banque de France, when applying for approval of the Crédit Municipal subsidiary responsible for management of the project as a “payment institution”, will shed further light on the legal position. 2. Insurance Under this topic there are 2 sub-topics that will be investigated. Firstly the impact on volunteers engaging in work on behalf of the currency operator and related need for insurance. Secondly how the governance board will be indemnified against major risks.

 

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In some cities/municipalities citizens engaging in volunteer work are covered by a municipal (accident/disability) insurance policy. There are, however, many municipalities where this not the case. The CCIA partnership assessed this for all programs we develop, and, where necessary, negotiate favorable terms with insurance companies to provide coverage in the event no city-wide volunteer insurance exists. Companies, charities, foundations and other entities (either profit or non-profit) who seek to introduce a currency scheme will need to consider the issue of potential liability of governance board members in the case of default, bankruptcy or other eventualities. In some countries (e.g. NL), insurance products for this type of liability are available (as long as the liability is not a result of e.g. illicit activities). For insurance companies the risks involved in running a community currency scheme may not be straightforward to assess, which means a negotiation can be required to agree upon the appropriate insurance policy. 2.1 Volunteer insurance (accident/disability) The SoNantes currency operates as a compensation chamber system recording transactions in goods and services between participants. Management and communication are directly effected by employees of the management structure (the subsidiary of the Crédit Municipal of Nantes called SoNao) or via external contractors paid to do this under contract with the SoNao subsidiary. Insurance for volunteers does not apply. The question of insurance for volunteers may arise for the la Sonantaise association for users of the currency of Nantes. In France, associations have an obligation of due care and attention to their members and third parties. They may have French civil liability for loss or damage if the victim, whether a member or third party, proves the fault to be intentional, negligent or careless. In such event, the association would have to pay damages to the victim. French civil liability will also arise where the loss or damage is caused by an object belonging to an association (a collapsing tent, staircase, etc.). Links to original law texts and contact details regulatory authorities relevant for this sub topic: Occupational accident insurance for volunteers (Article L743-2 of the French Social Security Code)

For more information:

Federation française des sociétés d'assurances - FFSA

26 boulevard Haussmann, 75 009 Paris

Tel.: 0033 (0)1 42 47 90 00

www.ffsa.fr 2.2 Liability of board The SoNantes project has not considered this insurance liability.

 

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We have, however, established systems for supervision and auditing:

- adoption of Articles of Association for the SoNao subsidiary, defining its powers and responsibilities;

- adoption of Articles of Association for La SoNantaise, the association for users of the Nantes currency;

- management supervision and internal audit in the subsidiary managing the currency. In addition, the currency is conceived as a compensation chamber for inter-company exchanges. In this connection, companies contribute to a solidarity fund (“fonds de stabilité”) to cover the risk of default by a participating company. Furthermore, the responsibilities of members and the management institution are defined in the payment service agreement for the use of Nantes: payment card blockage, objection to a payment, claims, overdraft, technical recording failure, etc. Responsibility of the governance board (Sonaoa institution): The company is directed and represented with regard to third parties by a Chairman, which is the legal entity shareholder of the Company. The Company is bound even by acts of the Chairman which are not within the Company's objects, unless it is proved that the third party knew that this was so or could not fail to have known it in all the circumstances, publication of the Articles of Association being insufficient in itself to amount to such proof. The sole shareholder appoints an individual as Managing Director to assist the Chairman. The sole shareholder appoints an individual as Deputy Managing Director to assist the Managing Director. It is empowered to represent the company with regard to third parties. The Deputy Managing Director has the same powers as the Chairman and the Managing Director, subject to any restriction thereon imposed by the decision of appointment or by a later decision. The company is managed and directed by a Board of Directors, chaired by the Managing Director of the company. The Board of Directors is composed of the Managing Director and the Deputy Managing Director. The Board of Directors is the executive body which directs the company's business within the meaning of CRBF regulation no. 97-02. It ensures that the company complies with all the regulatory obligations imposed on it by its status as a payment institution, including:

- it is responsible for the establishment and management of the internal audit, pursuant to CRBF regulation no. 97-02;

- it periodically assesses and audits the efficacity of internal policy, the systems and procedures established to ensure compliance with its obligations;

- it takes any measures required to rectify any failure or breach identified; - it supervises management and compliance with the powers and responsibilities

accorded and financial information; - it ensures the organisation, direction and evaluation of the internal audit mechanism

and procedure, including independent audit operations; - it organises a system for internal audits enabling internal reporting, to ensure that

the communication of financial information complies with the applicable regulations; - it identifies any risks affecting the company;

 

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- it takes any measures required to ensure continuity of the business; - it takes any measures required to ensure supervision of outsourced business and any

risks resulting therefrom. It shall without delay inform the ACPR of any significant incident or change in the regulations applicable to payment institutions. The company has a Supervisory Board, presided over by the Chairman of the company. The Supervisory Board is composed of from 3 to 5 members. The members of the Supervisory Board, whether individuals or legal entities, not being shareholders, are appointed by the sole shareholder. The Supervisory Board is the decision-making body within the meaning of CRBF regulation no. 97-02. In this regard, it must ensure compliance with its obligations under the regulations applicable to institutions subject to the ACPR. The Supervisory Board is also a consultative body. In this regard, it may obtain any documents it requires at any time. Once a year, the Chairman or Managing Director of the company shall report to it on the progress of company business. After the end of each financial year, the Chairman or Managing Director of the company shall report to it on the management and the annual accounts. The audit committee is responsible, subject to the decision-making body, for: - verifying the clarity of any information provided and assessing the appropriateness of the

accounting methods used for the creation of individual and, where appropriate, consolidated accounts;

- assessing the quality of the internal audit, including the consistency of the systems for measurement, supervision and control of risks and, where appropriate, propose additional action for this purpose.

This committee may be the committee responsible for application of the French Commercial Code in monitoring the preparation of financial information and the legal audit of the annual and consolidated accounts or any other body with equivalent duties. The executive and decision-making bodies of the company shall comply with their obligations under the regulations applicable to institutions subject to the ACPR. Links to original law texts and contact details regulatory authorities relevant for this sub topic: System of governance: regulations applicable to institutions subject to the ACPR. French Monetary and Financial Code and Regulation no. 97-02 of 21 February 1997. Regulation no. 97-02 on internal audits for credit institutions and investment companies. 3. Labor law One of the main target groups for social currencies are vulnerable an excluded strata of society, such as people with disabilities, the unemployed and people in deprived communities generally. Many of the people that can be (re)engaged and could participate in a social

 

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currency scheme are recipients of government/municipal welfare or (unemployment) benefits. For them to safely participate it is important that a dialogue is started and rulings are obtained on the potential impact of participation in social currency schemes from the relevant national and local authorities in the countries in which we implement them. 3.1 Social security SoNantes is above all a “crédit mutuel” (mutual exchange) system. Question not applicable to this. 3.2 Unemployment and disability benefits Links to original law texts and contact details regulatory authorities relevant for this sub topic: Articles L 54-25 _8 and R 124_25 – 19, French Employment Code Asso.gouv.fr 3.3 Employment Terms Companies may use their local currency to pay part of their salaries and bonuses to their employees or for particular items, e.g., use of public transport (cf. company benefits).

This means that companies transfer purchasing power in Nantes currency to their employees. The employees of participating companies, with their employees' formal agreement, will be given a current account with SoNao in local currency, and one or more methods of payment, enabling them to use the local currency with all the economic entities participating in the circuit.

Of course, payment in local currency is and will only be a complementary mode of payment. All social security and fiscal charges will continue to be paid in euros. As the Complementary Currency is only an alternative method of paying part of the net salary, the methods for calculating charges need not be changed.

The nature of the employer-employee relationship concerns these two groups and not the local currency managers. 4. Privacy and safety Data protection is an important topic for most network services. Within CCIA project partners are responsible for formulating and implementing privacy policies to protect sensitive user data. The safety protection of individuals is embedded in several legal texts. We show how these apply to the selected currency types. For example do we deal with registered offenders who want participate in currency programs? In addition there are specific regulations for working with the elderly and children. 4.1 Safety/Protection of (vulnerable) CC users Opening an account in SoNantes requires the prior signature of a payment service agreement with the user of SoNantes. Every user is informed of its content before signing it. This agreement is signed by the user and by the manager of the Crédit Municipal SoNao subsidiary. New members sign their acceptance of the conditions of operations in CC and clearly accept the Manifesto.

 

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This agreement contains: - general conditions - “private individual” or “professional” special conditions - pricing terms - the stability mechanism

Each user of SoNantes will hold an account accessible by Internet or via a type of bank card provided to it (SoNantes general conditions: clause 3.2). It will have an identifier and password chosen by it for accessing its account. The password is encrypted and known only to the client. If it forgets its password, the holder is responsible for re-entering its password, by re-recording a new password for its account. The customer is wholly responsible for the use and retention of its password and bank card code (SoNantes general conditions: clause 3.4.8). Each account-holder will receive its bank card by post. In the event of its loss or theft, the account-holder will be responsible for taking any appropriate measures for its own protection (SoNantes general conditions: clause 3.4.7). For payment by text message: receipt of code. All risks concerning the instrument of payment are covered by the provisions of the general conditions. The risks concerning payment transactions arise from our chosen information system: Cyclos software version 3.00 – “CCIA" project – which enables us to share any developments or adaptations of the Cyclos software. In this connection, a new software solution for Nantes will be available. This software, based on Cyclos, well tried and tested, will give all users access by Internet. Each transaction will be recorded and the users can follow their transactions on-line. A monthly statement of transactions will be provided to each user. SoNao guarantees the registration of all transactions effected by users. Personal data for each user of SoNantes will only be accessible via the user's Internet account. Security of access to data is guaranteed by our server's hosting contract with the selected host. Security of access to the SoNantes server is guaranteed. Links to original law texts and contact details regulatory authorities relevant for this sub section: French law no. 78-17 of 6 January 1978, as amended, on data protection and freedom of information. 4.2 Data storage and protection SoNantes server hosting will be provided by a specialised company. The company has been selected. We required the following services: Minimum security level required: level III Supervision, security and access:

• Physical security of the building • Supervision of the premises • Controlled access

Protection of the Data centre:

 

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• Electric power supply: the servers are supplied from an inverted and secured electricity circuit. The inverter is duplicated. A generator is provided, guaranteeing continuity of operation in the event of interruption of the electricity supply.

• Air conditioning: the server's hosting chamber has high capacity air conditioning, with independent dual circuits.

• Fire protection: the hosting chamber has fire-resistant partitioning and a state-of-the-art smoke detection system. Any outbreak of fire is immediately extinguished by inert gas, which does not damage the equipment.

• Maintenance: all equipment is maintained under contract with specialised contractors and is regularly checked and maintained.

Internet and network connections

• Internet: the site is connected to the Internet with multi-homing fibre optics by two different operators. The fibre optic arrival points are also separate. The service and support contract with the two operators guarantees a reconnection time of 4 hours, 24/24 and 7/7.

• Network infrastructure: it is based on DELL and HP equipment and is fully duplicated. Equipment supply To meet performance and security requirements, the contractor provides the following equipment:

• Proxy Inverse servers with a 2048-bit mutualised certificate • A server with a minimum CPU Dual Core i3 (or equivalent), 500 GB of 10k rpm disk

and 8 GB of RAM. • Backup equipment including daily backups of MySQL databases. • 5 public IP addresses

Support and maintenance software and IT platform

• Secured access for maintenance of the software and database • Duplication of equipment, both hardware and software • Protection plan for data conservation and recovery in the event of an incident • Hosting quality guaranteed by an SLA (Service Level Agreement). It includes

availability of equipment and services, network accessibility, maximum intervention time (GTI) and reconnection time (GTR).

Guarantees

• Guaranteed intervention time (GTI) • Guaranteed reconnection time (GTR)

Links to original law texts and contact details regulatory authorities relevant for this sub topic: French law no. 78-17 of 6 January 1978, as amended, on data protection and freedom of information. 5. Financial service regulations Any organization that prints physical ‘money’, or vouchers, makes electronic monetary units available, that are convertible into legal tender or is engaged in the provision of payment services will need to review how the relevant financial services regulations apply to their currencies and which enforcement bodies (Central Banks, National and international Finance institutions) need to be engaged with for compliance or exemptions.

 

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All countries have very strict laws restricting who can print money and currency operators will need to ensure that they do not contravene these rules. The provision of the electronic money directive and payment services directive only apply to those currencies that are not able to show that they operate in limited network. But more general rules and laws might apply, for example for the issuance of paper notes. 5.1 Issuing physical currency Observation from Nantes: the questionnaire does not deal with the management of euros deposited to secure the local currencies, relying on a € /MLC (local complementary currency) exchange, but concerns one aspect of unit-linked accounts, which the ACPR is considering. How does your currency comply with the legislation covering the printing of physical notes or why is this not applicable? (output 1): [ Please insert partner response. No space restriction ] Not applicable toThe SoNantes : the currency is only virtual available.. How does this sub topic impact the 4 CCIA currency types in your country in the broader sense (Output 2. Country coordinators: Please contact the CCIA partners, observers (coordinated by nef) and other specialized organisations to coordinate the proper completion of this section): [ Please insert partner response. No space restriction ] Links to original law texts and contact details regulatory authorities relevant for this sub topic: [ Please insert partner response. No space restriction ] Links to original laws and contact details for the regulatory bodies concerned with this part: French Monetary and Financial Code - L.525-5: issue and management of electronic currency L.511-7: provision of banking payment services

Instruction no. 2013-I-13 concerning forms for declarations of exemption from approval of a credit institution for the provision of banking payment services, declarations of exemption from approval of an electronic currency institution for the issue and management of electronic currency and declarations of exemption from approval of a payment institution for the provision of payment services – Appendix 1 – Appendix 2 – Appendix 3

5.2 Digital currency non-convertible to national currency SoNantes is not reconvertible into euros. This general principle has one exception: the reimbursement to SoNao of the initial advance made by the subsidiary for ensuring the

 

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account's stability, until companies have invested sufficient funds to compensate any risk of company failure. The exchanges between SoNantes and the ACPR and the Banque de France when applying for approval of the Crédit Municipal subsidiary responsible for management of the project as a “payment institution” will shed further light on the legal position. Links to original law texts and contact details regulatory authorities relevant for this sub section: French Monetary and Financial Code - L.525-5: issue and management of electronic currency L.511-7: provision of banking payment services

Instruction no. 2013-I-13 concerning forms for declarations of exemption from approval of a credit institution for the provision of banking payment services, declarations of exemption from approval of an electronic currency institution for the issue and management of electronic currency and declarations of exemption from approval of a payment institution for the provision of payment services – Appendix 1 – Appendix 2 – Appendix 3

5.3 Digital currency convertible to national currency (if applicable) Links to original laws and contact details for the regulatory bodies concerned with this part: French Monetary and Financial Code - L.525-5: issue and management of electronic currency L.511-7: provision of banking payment services

Instruction no. 2013-I-13 concerning forms for declarations of exemption from approval of a credit institution for the provision of banking payment services, declarations of exemption from approval of an electronic currency institution for the issue and management of electronic currency and declarations of exemption from approval of a payment institution for the provision of payment services – Appendix 1 – Appendix 2 – Appendix 3

5.4 Money laundering The Nantes project has a money laundering policy. Summary table of the systems for analysing, signalling and dealing with the risks of money laundering and terrorist financing established by Nantes, with regard to customer transactions concerning predetermined sums, justifying a request for further information from the client and/or for rejecting the transactions:

System name Investigation procedure Action

Validity of transaction

Automatic investigation: for each transaction, an automatic investigation prevents any transaction which would exceed the debit or credit balances set for each user

See “Investigation of blocked transactions”

Investigation Quarterly analysis of any transaction for at least 8,000 SN and Possible declaration of

 

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of high-value transactions

comparison with activity declared by the participants suspicion + see “Freezing of assets” investigation

Investigation of unconfirmed transactions

Quarterly analysis of any transaction requested by a participant which fails for technical reasons

Possible declaration of suspicion + see “Freezing of assets” investigation

Investigation of blocked transactions

Quarterly analysis of any requested transaction blocked by the system for exceeding the limit

Possible declaration of suspicion + see “Freezing of assets” investigation

Investigation of irregular transactions

Quarterly analysis of participating companies with no transactions over the last quarter

Possible declaration of suspicion + see “Freezing of assets” investigation

Investigation of actual beneficiaries (politically exposed persons)

Quarterly analysis of actual beneficiaries: - all actual beneficiaries of the companies opening an account in the past quarter and, at least, since the last analysis; - all new actual beneficiaries declared by companies when annually updating their files.

Quarterly analysis of transactions by “politically exposed persons”

“Freezing of assets” investigation

In the event of doubt as to the identity of the principal or the economic justification for a transaction, the consolidated list of individuals, entities and bodies whose assets have been frozen, published by the European Union and available on the Finance Ministry site, may be searched.

Declaration of suspicion

In all cases (with or without a declaration of suspicion), the analyses and their conclusions are retained and followed up during the next quarterly analyses. Professionals must duly comply with their obligations of vigilance.

Links to original law texts and contact details regulatory authorities relevant for this sub topic: Decree no. 2009-1087 of 2 September 2009 Article L.561-6 of the French Monetary and Financial Code European Commission Directive 2006/70/EC, by “politically exposed persons”

3rd Money Laundering Directive 2005/60/EC of 26 October 2005 transposed by Order 2009-104 of 30 January 2009

Articles L. 561-5 to -10-2 of the above order and articles R. 561-5 and -6 of the decree of 2 September 2009.

5.5 Other central bank oversight regulations SoNantes is operated by a subsidiary of the Crédit Municipal of Nantes. The Crédit Municipal of Nantes is an institution approved by the ACPR for its current business, as will be the dedicated subsidiary as a payment institution. Links to original law texts and contact details regulatory authorities relevant for this sub topic: Where currency is managed by a Crédit Municipal office: these are governed by the French Monetary and Financial Code and must be approved by the ACPR.

 

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6. Acceptance of CCs by local governments Being accepted in lieu of legal tender particularly by public entities is the goal of many CCs. Municipalities accepting local currencies for both services (swimming pool, public transport etc) and taxes (business rates, local taxes) gives CCs greater use value and credibility. However, especially in the Eurozone, those who tried to establish such spending possibilities in different countries encountered barriers of different kind, sometimes of personal nature (risk averseness) sometimes allegedly due to regional procedure regulations, state law or even EU law. 6.1 Acceptance of CCs for municipal services and taxes Project postponed pending a positive change in the attitude of the Ministry of Finance. The MLC association is currently negotiating with the Ministry. How does this sub topic impact the 4 CCIA currency types in your country in the broader sense (Output 2. Country coordinators: Please contact the CCIA partners, observers (coordinated by nef) and other specialized organisations to coordinate the proper completion of this section): [ Please insert partner response. No space restriction ] Links to original law texts and contact details regulatory authorities relevant for this sub topic: [ Please insert partner response. No space restriction ] Responsibilities per partner Qoin

• Overall coordination output 1 - 3 • Describe the impact of the relevant laws and regulation on the operation of

TradeQoin (output 1). • B2B currency advisor for all NWE-countries (output 2) • Delivery of final reports on output 1 - 3

Lambeth

• Describe the impact of the relevant laws and regulation on the operation of Lambeth Pound (output 1).

• Country responsible for deliverance of information on legal compliancy areas of the 3 CCIA currency types in the United Kingdom (output 2)

Nantes

• Describe the impact of the relevant laws and regulation on the operation of Sonantes (output 1)

• Country responsible for deliverance of information on legal compliancy areas of the 3 CCIA currency types in France (output 2)

 

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Limburg.net

• Describe the impact of the relevant laws and regulation on the operation of E-portemonnee (output 1)

• Country responsible for deliverance of information on legal compliancy areas of the 3 CCIA currency types in Belgium (output 2)

Amsterdam-Oost

• Describe the impact of the relevant laws and regulation on the operation of Makkie (output 1)

• Country responsible for deliverance of information on legal compliancy areas of the 3 CCIA currency types in the Netherlands (output 2)

Spice

• Describe the impact of the relevant laws and regulation on the operation of all timebanks developed within CCIA (output 1).

• Timebank currency advisor for all NWE-countries (output 2). Nef

• Support Qoin with the coordination in outputs 1 - 3 • Support Qoin in the delivery of a final report in outputs 1 – 3 • Apporach CCIA observer and other organisations for input to country coordinators

(CCIA) and act as Country Coordinator for GER, LUX, IRE in output 2 - 3 Planning Definite planning will follow soon.