Cracking Down on Family Benefit Fraud: What You Need to Know

The government has set a clear goal: to fight against tax and social fraud across the nation. Anne Guyot-Welke, the secretary of the Solidaires Finances Publiques national union, stated that this issue amounts to billions of euros, “including all taxes, it is estimated between 80 and 100 billion euros”, she mentioned on Franceinfo. In response, on May 30, the administration unveiled a comprehensive plan to tackle all forms of public finance fraud, whether they be social, tax, or customs related, with a set of specific actions.

What’s new for family allowance beneficiaries?

Starting July 1, 2023, social benefits are no longer paid into foreign accounts outside the European Union, as stated by Gabriel Attal on April 21 on Europe 1. This means that recipients of family allowances who receive any kind of social assistance, such as family benefits, from the Family Allowance Fund (CAF) or the Agricultural Social Mutual Fund (MSA), on a bank account located outside the SEPA zone can no longer access these funds.

The SEPA zone includes the 28 European Union member countries, the territories of the European Economic Area, as well as Switzerland, Andorra, Monaco, San Marino, and the Vatican. Therefore, it will now be impossible to request social aid payments into a bank account held in Brazil, Asia, or the United States.

Residency requirements for family benefits

The Public Service website clarifies, “to be eligible for family benefits (examples: family allowances, back-to-school allowance), you must reside in France on a stable basis.” You must either reside frequently in France, or live on French territory for more than 9 months “starting from 2024”, Gabriel Attal clarified on Europe 1, compared to the current requirement of 6 months.