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The laws No. 2013-100 of 28 January 2013 and No. 2013-672 of 26 July 2013 (law on the separation and regulation of banking activities) have created for the credit, payment and e-money institutions an obligation of systematic information communication (COSI) to Tracfin (anti-money laundering cell of Bercy) on:

  • The funds transfer transactions through a cash payment or by means of electronic currencies exceeding 1,000 euros or 2,000 euros accumulated by client on a calendar month;
  • The financial transactions with a high risk of money laundering or terrorist financing due to the country, the origin or destination of the funds.
  1. The objective of this arrangement

The purpose is different from the suspicious transactions report. The data issued from COSI are loaded in a documentary database and are only intended to improve the ongoing investigations.

  1. Development of the COSI arrangement in 2016

The scope of COSI has been extended to large cash transactions.

The decree of March 25, 2015 resulting from the banking law of July 2013 introduced as of the 1st of January 2016 a new obligation for banks and credit institutions:

Cash deposits and withdrawals transactions on deposit and withdrawal accounts higher than 10,000 euros (cumulative over a month) will be systematically communicated by banks to Tracfin. The declaration is monthly, not later than thirty days following the month in which the accumulated threshold has been reached.

  1. The elements defined by the decree

The decree defines the information to be sent to Tracfin, namely the identification elements of the holder(s) accounts, date, reference and amount of transactions, international bank account number (IBAN).

  1. Exception adopted by the Decree

Transactions linked to a credit are not subject to the provisions of the decree.

  1. Does the COSI arrangement is part of the suspicious transactions report?

No, the purpose of COSI is different from the suspicious transactions report. The COSI has a systematic character without a suspicion concept. The COSI cannot justify alone the initiation of an investigation. It does not exempt credit and payment institutions from issuing, for those same flows, suspicious transactions report.

  1. What are the impacts?

The COSI arrangement will generate IT investments for the update of the information systems of financial institutions.

  1. Date on which the obligation is introduced

1st January 2016

  1. What are we waiting for?

A dialogue at the technical level is ongoing between Tracfin cell and the banking industry for the implementation of the new systematic reporting of transactions COSI. (Data to be downloaded from the Ermes platform, file size, automatic interconnection to Ermes from the IS).

A technical document must be presented upon enforcement and a meeting in September 2015 should discuss the next steps (regulatory changes, implementation, and schedule)

Sources:

– Tracfin Annual Activity Report of 2014