TRACFIN (Traitement du Renseignement et Action contre les Circuits Financiers Clandestins) is the French governments financial intelligence unit.

Its mission is to combat:

• Money laundering
• Tax fraud
• Terrorist financing
• Financial crime

French banks, mortgage brokers, notaries, lawyers, and real estate professionals are all subject to strict anti-money laundering (AML) regulations. As part of these obligations, they must verify:

• the identity of every client;
• the origin of the funds used for the purchase;
• the consistency between a clients financial profile and the proposed transaction.

For international buyers, this means providing documents that clearly demonstrate how the purchase will be financed.

Typical supporting documents include:

• Recent bank statements
• Investment account statements
• Evidence of savings
• Property sale proceeds
• Employment income
• Business income
• Dividend distributions
• Inheritance documentation
• Gift documentation, where applicable

These requests are standard practice and should not be interpreted as a sign of concern regarding your application.

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is a U.S. law designed to prevent offshore tax evasion by U.S. taxpayers.
As a result of international agreements between France and the United States, French financial institutions must identify clients who qualify as U.S. Persons and comply with specific reporting obligations.

You may be affected by FATCA if you are:
a U.S. citizen;
a U.S. permanent resident (Green Card holder);
a dual national including U.S. citizenship;
a U.S. tax resident.

French banks will typically ask you to complete a self-certification form confirming your tax residency and may request additional information such as your U.S. Tax Identification
Number (TIN).
Again, this is a routine regulatory requirement and does not negatively impact your eligibility for a mortgage.

Why Does This Affect Mortgage Processing?

Unlike many domestic mortgage applications, financing an international real estate purchase involves several parties working together:
the borrower;
the mortgage broker;
the French lender;
the notary;
foreign banks where funds are held;
accountants or wealth advisers, when applicable.

Before issuing a final mortgage approval, lenders perform extensive compliance checks alongside the traditional credit analysis.

This includes:

• verification of identity documents;
• source of wealth review;
• source of funds verification;
• international tax compliance;
• review of banking documentation;
• property appraisal;
• legal review of the transaction.

Some documents may require clarification or additional supporting evidence, particularly where income is derived from multiple jurisdictions, business ownership, trusts, investment portfolios or family wealth structures.

How Long Should You Expect the Process to Take?

Although every transaction is different, international mortgage applications generally require three to four months from the initial consultation to the completion of the property purchase.

A typical timeline is:
Week 1–2: Initial consultation and financial assessment.
Week 2–4: Collection and submission of supporting documents.
Week 4–6: Lender’s processing time.
Week 6–8: Credit underwriting and regulatory compliance reviews.
Week 8–10: Formal mortgage offer issued, account opening
Week 10–12: Mandatory acceptance period, coordination with the notary and
completion.

This timeframe reflects the thoroughness of the French lending process rather than any issue with the application itself.

How Can You Help Keep the Process on Track?

The best way to ensure a smooth transaction is to prepare your documentation as early as possible.

We recommend having available:

Providing complete documentation from the outset significantly reduces processing times and minimizes requests for additional information.