PSAN: avoiding missteps with Tracfin 

The rise of digital technologies, and blockchain in particular, has given rise to a new category of players: PSANs, or digital asset service providers. Still little known to the general public, they have become an essential part of the French crypto ecosystem. Their numbers have exploded: while there were barely 30 of them in 2022, more than 150 companies were registered with the Autorité des marchés financiers (AMF) by mid-2025.  

A craze for cryptoactives... 

If the number of PSANs is growing rapidly, it's first and foremost because the demand is there. According toADAN (Association pour le Développement des Actifs Numériques), 10% of French people already own crypto-assets, and devote an average of 15% of their savings to them. Even more striking: a third of them were planning to invest in cryptos in 2025. However, the market remains young and under construction: 30% of crypto-asset holders invested for the first time less than two years ago.   

... But the emergence of new risks 

On the other side of the coin, the development of this market has created new channels for money laundering and terrorist financing. The field of crypto-assets is in fact particularly concerned by forms of criminality enabling the laundering and financing of occult activities, for example:   

• Ransomware or cryptojacking 

• Acquiring illicit goods or services on the Darknet or Deepweb 

• Scams, via online investment platforms offering crypto-assets as an investment medium in a context of high market volatility 

• The speed of transactions and inadequate regulation in some countries 

• The supply of payment media such as prepaid cards (Crypto2Plastic), which enable criminals to make unlimited use of the proceeds of their crimes. 

Cryptoassets: discreet paradise for dubious transactions 

All these entry points are obviously being exploited: according to a 2021 FATF report, companies specializing in crypto-asset transactions, were already estimating the share of dubious, or even criminal, assets at between 0.62% and 9.9% of the total number of transactions. Still according to the FATF, this range would lead to a high estimate of their value at 5.1% of exchanges, or nearly $6 billion... every day! Moreover, suspicious transactions are increasingly spotted by PSANs: the number of suspicious transaction reports in France rose from 330 in 2021 to over 3,000 in 2023, with 73% coming from five players, according to Tracfin's 2024 report.   

PSAN: what special obligations must they meet? 

Fortunately, a legislative framework provides a framework for this sector marked by the disintermediation of exchanges. In France, the PACTE law of May 22, 2019 plays this role, supplemented at European level by the MiCA (Market in Crypto Assets) regulation. An April 2021 decree has furthermore strengthened the fight against virtual asset anonymity by specifying identity verification procedures, particularly for PSANs, which must identify their customers before any occasional transaction. In addition to this verification, PSANs also rely on transactional analysis tools (OAT), and according to Tracfin, their vigilance combines knowledge of the customer relationship and the data provided by these tools. This enables them to clearly understand transactions, both in terms of the economic origin of funds linked to activities in official or digital currency, and their destination: financing of terrorism, illicit purchases, tax fraud, laundering of organized crime, or beneficiaries such as terrorist entities or criminal groups.  

Tighter controls for PSANs 

PSANs are subject to increasingly stringent controls. Since the Order of December 9, 2020, checks have covered several areas: risk classification, identification and verification of customer identity, know-your-customer (KYC), enhanced examinations, suspicious transaction reports and asset freezing measures. To obtain AMF approval, NSPs must provide a number of guarantees, including:  

  

• Establish a classification of risks linked to money laundering and terrorist financingAML-CFT), taking into account the nature of the products or services, transaction methods, distribution channels, customer profiles, as well as the countries or territories of origin and destination of funds.  

• Present the organization of their AML-CFT system, in line with their risk analysis. This must include appropriate internal procedures, specifying the due diligence to be carried out in relation to customers. They must also describe the mechanisms in place to identify atypical or suspicious transactions, based on criteria and thresholds of significance adapted to the risk profile of business relationships.  

PSAN: KYC and KYB, more than just formalities 

To ensure compliance, PSANs must therefore verify the identity of their customers by applying at least two means of identification stipulated by the French Monetary and Financial Code (reliable electronic documents, valid official documents, extracts from official registers, etc.). This is the principle of KYC (Know Your Customer) and KYB (Know Your Business). These are the first lines of defense for PSAN.  

This verification must, of course, be carried out before entering into a business relationship, as a decree of April 2021 reminds us. TheADAN (Association pour le Développement des Actifs Numériques), which has published a methodological guide for PSANs, specifies that they must " be able to demonstrate not only that procedures comply with applicable regulatory obligations, but also that they are effectively put into practice, and that their proper application is subject to ongoing monitoring and periodic controls."  

Still room for improvement 

Despite a strict regulatory framework, Tracfin believes that practice is still insufficient. Most PSANs rely essentially on transaction analysis tools, without paying sufficient attention to risks linked to customer profiles or distribution channels. Other weaknesses include the fact that complex or networked schemes are rarely reported, and tax fraud-related declarations remain very rare. As a result, for Tracfin, the behavior of these players is still far from being at the expected level.   

Non-compliance of PSANs: major risks 

Non-compliance with Tracfin obligations exposes NSPs to significant financial, reputational and criminal risks, including :  

- Heavy financial penalties: Tracfin, in coordination with the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR), is empowered to impose heavy financial penalties for breaches of anti-money laundering and anti-terrorist financing obligations. These fines can reach millions of euros, or even a high percentage of sales.  

- Reputational damage: a non-compliant NSSP can suffer serious reputational damage, leading to a loss of confidence on the part of customers, partners and investors. This can lead to customer attrition and difficulties in attracting new users.  

- Restrictions or withdrawal of authorization: the AMF may impose restrictions on the activities of a PSAN, or even withdraw its authorization, thereby depriving it of the right to operate.  

- Criminal prosecution: in the most serious cases, PSAN managers can be prosecuted for complicity in money laundering or terrorist financing, with prison sentences and fines.  

Technology: an essential compliance lever for PSANs 

When it comes to compliance and the fight against money laundering and the financing of terrorism, PSANs must set an example. And be beyond reproach! To achieve this, the use of innovative technologies is essential. Solutions such as those from AP Solutions IO offer an automated, intelligent approach to compliance management for :  

- Automate KYC/KYB processes: AP Solutions IOautomatically identifies risks linked to sanctions (asset freeze), Politically Exposed Persons (PEP) and reputational risk by cross-referencing data from multiple sources for reliable, real-time detection. 

- Optimize detection of suspicious transactions: AP Solutions IO tools incorporate transactional monitoring algorithms that identify atypical patterns and risky behavior, helping PSANs to generate suspicious transaction reports efficiently.  

- Constant regulatory watch: AP Solutions IO solutions are designed to adapt quickly to regulatory changes, ensuring that PSANs are always in compliance with the latest Tracfin requirements.  

- Manage data retention securely: AP Solutions IO platforms offer secure, traceable storage solutions, essential for meeting data retention obligations.