TRACFIN

As a real estate agency, we are subject to strict legal obligations. Among these is the obligation to comply with anti-money laundering and counter-terrorist financing (AML/CTF) regulations. Various reports published by the Financial Action Task Force (FATF)* highlight that the real estate sector generates numerous financial transactions. It is a sector vulnerable to money laundering techniques, and real estate agents can therefore be prime targets in the strategy of laundering illicit funds, as they are highly solicited. These obligations are governed by the French Monetary and Financial Code, particularly Article L. 561-2.

What is TRACFIN?

TRACFIN (Intelligence Processing and Action Against Illicit Financial Circuits) is the French financial intelligence unit in charge of combating illicit financial circuits, money laundering, and terrorist financing (TRACFIN – 10 rue Auguste Blanqui – 93186 MONTREUIL SOUS BOIS Cedex – Tel. +33 1 57 53 27 00).

Our obligations as real estate professionals

To comply with AML/CTF requirements, we must identify and verify the identity of our clients. Before establishing a business relationship, we are required to verify the identity of our clients, including the beneficial owners, by collecting official documents. Additionally, information and documents related to the identity of the clients and the transactions carried out must be kept for a minimum period of five years after the end of the business relationship.

As such, Fine & Country will be required to request the following documents from its seller and buyer clients:

Identification documents (ID card, passport, residence permit)
Proof of ownership (property title)
Proof of address
In the case of a legal entity: company registration certificate (Kbis), articles of association, and identification and proof of address of the manager(s).

In certain cases, we may also be required to request proof of funds to ensure the transparency and security of the transaction.

Sanctions in case of non-compliance

Failure to comply with these obligations may result in disciplinary, administrative, and criminal sanctions. It is therefore essential for our agency to implement appropriate internal procedures and to regularly train our staff on AML/CTF requirements.

By informing our clients of these obligations, we strengthen transparency and contribute together to the fight against money laundering and terrorist financing.