Arije Boutique Rolex Etoile. (Photo: T. Campion/Rolex)
A Paris jeweler operating a Rolex boutique has been fined €240,000 and given a 12-month suspended trading ban by French regulators for serious anti–money-laundering failures.
The news comes as Rolex weighs tightening control over retail to limit reputational risks after acquiring the world’s largest Rolex retailer, Bucherer, while simultaneously facing ongoing legal challenges in France.
According to a Ministère de l’Économie et des Finances notice, the sanctions were issued following an investigation that uncovered nombreuses lacunes, or numerous lapses, in risk assessment, weak client identification and insufficient oversight of large cash transactions. They include one €300,000 cash payment, well above France’s legal limits of €1,000 for residents and €15,000 for non-residents.
French regulators described the retailer’s internal controls as deeply deficient. The retailer, Arije, is a longtime Paris jeweler that operates a Rolex flagship boutique near the Champs-Élysées, as well as Arije Saint-Germain des Prés.
For Rolex, the case adds to mounting legal pressure in France, as it is still dealing with a €91.6 million fine from the Autorité de la concurrence for prohibiting its retailers from selling watches online, a ban deemed anticompetitive. As of today, Rolex is appealing the decision and continues to forbid online sales by its official retailers in France.