Title: Tracfin’s Indispensable Role in Protecting France Against Financial Crimes: A Record Year in 2021
Tracfin’s Importance in Safeguarding France’s Economy and Security
In the face of escalating financial crimes, Tracfin, France’s financial intelligence unit, has demonstrated its crucial role in protecting the nation’s economy and security. Bruno Le Maire, the Minister of Economy, Finance and Industrial and Digital Sovereignty, and Gabriel Attal, the Minister Delegate for Public Accounts, acknowledged Tracfin’s essential role in a joint statement on the release of its 2021 annual report on July 27.
Countering Money-Laundering and Terrorism Finance During Challenging Times
During the ongoing pandemic and the Russia-Ukraine conflict, Tracfin’s financial intelligence has been brought to the fore. Le Maire recognized Tracfin’s importance in daily protection of French citizens and its exceptional performance in countering money-laundering and terrorism finance. Attal added that Tracfin’s work directly impacted foreign policy decisions, specifically through the Russia task force that led to EU-level sanctions against Russia.
Maturing Public-Private Collaboration in the Fight Against AML/CFT
Tracfin reported a sharp rise of 44% in activity in 2021, receiving 160,952 suspicious-activity reports. This collaboration between public and private sectors lies at the core of the preventive and law-enforcement ecosystem devoted to combating financial crime. In the year, Tracfin passed on 3,242 information and intelligence briefings to various partners, including judicial authorities, government departments, intelligence services, and foreign financial intelligence units.
Significant Illegal Financial Circuts and Tracfin’s Role in Countering Them
Tracfin’s 2021 report analyzed significant illegal financial circuits, revealing an increase in suspected financial stakes reaching €853 million. Key categories of illegal activities included:
- Criminal money laundering through various methods, particularly fake transfer-order scams
- Accounting fraud
- Child-porn content distribution rings
- Fraudulent activities damaging public finances, including tax fraud, social security fraud, customs fraud, and embezzlement
- Preventing terrorism and organized crime and protecting economic interests
- Anticipating risks of “crypto-laundering” and monitoring financial flows from ransomware cyber-attacks
Tracfin’s Impact on Russian Economic Actions and EU-level Sanctions
As an “inner-circle” intelligence service and the coordinator of the Russia task force, Tracfin played a pivotal role in obstructing Russian economic actions and imposed administrative and judicial sanctions against Russia during the invasion of Ukraine.
Tracfin’s Future Mission: Addressing Evolving Strategic Challenges
In the year ahead, Tracfin will continue to carry out its public-service mission, safeguarding France against the evolving strategic challenges brought on by new forms of financial crimes. Tracfin, a vital financial intelligence service in France since 1990, is directly entrusted to the Ministry of Economy, Finance, and Industrial and Digital Sovereignty, and the Minister Delegate for Public Accounts. Its expertise and resources enable it to pursue three top priorities: combating economic and financial crime, fighting public finance fraud, and defending and promoting the nation’s interests.