TRACFIN (financial intelligence unit)
A financial-intelligence service attached to the Ministry of the Economy, tasked with fighting money laundering and terrorist financing. Under AML-CFT rules, an intermediary detecting a suspicious operation must file a suspicious-activity report to it. It is the final recipient of the broker's due-diligence duties.
Key points
- Financial intelligence unit responsible for combating money laundering and terrorist financing.
- IOBSPs are subject to the duty to file suspicious-activity reports with TRACFIN.
- The report is confidential: the client must never be informed of it.
- Failure to meet due-diligence obligations exposes the intermediary to ACPR sanctions.
Frequently asked questions
When must an IOBSP broker file a report with TRACFIN?
The duty is triggered as soon as the intermediary detects, in the course of their activity, an operation or behavior that suggests an illicit origin of funds or a link with terrorist financing. Certainty is not required: a simple reasonable suspicion is enough to file a report via the dedicated online portal. The report must precede or accompany any completion of the suspicious transaction.
Why is it prohibited to warn the client that a report has been filed?
The 'non-disclosure' or anti-tipping-off principle is enshrined in AML-CFT legislation: revealing the existence of a suspicious-activity report would allow the targeted person to conceal evidence or move funds. A broker who violates this principle is personally exposed to criminal prosecution, independently of any ACPR disciplinary sanction.
What is the difference between AML-CFT due diligence and the broker's ordinary duty to advise?
The duty to advise aims to recommend the best product for the borrower, in their financial interest. AML-CFT due diligence is a public-order obligation that goes beyond the client relationship: it aims to protect the financial system from criminal abuse. Both coexist but do not substitute for each other, a broker can advise their client perfectly while fulfilling their due-diligence obligations.
In practice
During file analysis, a broker notices that the down-payment funds come from a wire transfer from a high-risk country and that the bank statements show unusual movements inconsistent with declared income. Without informing the client, the broker immediately files a suspicious-activity report on the TRACFIN portal and temporarily suspends processing of the file.
Official sources
- TRACFIN — Financial intelligence unit · Ministère de l'Économie
- Article L519-1 of the Monetary and Financial Code · Légifrance
- Prudential supervision and resolution authority · ACPR (Banque de France)