So........where can I get my passport?

Not necessarily, if you consider he is probably an idiot.
"Hooker": Baby, don't worry. As long as you don't handle the money, it won't count as prostitution.
Idiiot: Der, okay. Let's use the ATM!
"Hooker": Yay!

Which would make sense if it wasn't for the fact that one woman walked up to him and flashed him while he's at the cash point while the other grabbed the cash. If he walked up to the cashpoint with them then I think the authorities would have picked up on that.
It also doesn't really fit with your scenario as he wouldn't have needed to be distracted to let them have the cash.

I don't know the average rate for a hooker, but I would think that 300 euros could at least get a half decent "party". And if they were catering to idiots, they probably weren't high-class.
So he enters the pin thinking "Ha, now I am not breaking the law. Because I never handle the money", one of them gives him a "show" and the other 'jacks his money. Then they leave, and he realizes how stupid he is.
From a soundless camera, that could be argued as "I was distracted"

They didn't walk up to the cash point together.

Breaking WHAT law 0_o ? He was neither trying to buy a gun nor crack...

There was speculation the dude was covering for paying a prostitute (or thought he was).
Dunno, I've seen people having sex on bus benches (fully clothed) in Switzerland and France. She might have snuggled up to him more than the story lets on, that would give the accomplice plenty of time. Any kind of traffic noise would cover up the ATM sounds and in many areas of France passers-by wouldn't look at it like it was that strange.

I know. I usually read the entire thread before posting. I was just trying to point out that prostitution is, AFAIK, a perfectly legal thing.
If doing something isn't illegal, paying someone to do it most likely isn't illegal either...

http://en.wikipedia.org/wiki/Prostitution_in_France
Prostitution is legal, but cannot be advertised in any form.
So I guess that makes the "trying to hide the solicitation" thing less likely, since the majority of the legal risk is in the "lookin' for a good time" and not in the "so you want me to lick your feet in a jacuzzi full of pepto bismol?"
Either way, me still think there is more to this than we are being told.