On 13-15 January 2025, the Council of Europe Economic Crime and Cooperation Division, in cooperation with the European Commission and the French Financial Intelligence Unit – Tracfin, organised an advanced-level training on money laundering and terrorist financing (ML/TF) investigations involving crypto-assets and decentralised finance, for specialised Tracfin agents.

This advanced training marked a significant milestone in the implementation of the Technical Support Instrument (TSI) initiative for France, completing a series of capacity-building activities aimed at equipping all Tracfin staff with the necessary knowledge and skills to investigate ML/TF cases involving crypto-assets.

In April 2024, five introductory-level training sessions were held to introduce all Tracfin agents to the core concepts and principles needed to better understand the functioning of blockchain, decentralised finance, and virtual assets, as well as their potential misuse for ML/TF purposes.

Building on this, in November 2024, a targeted intermediate-level training was conducted for 140 Tracfin analysts, investigators, and support staff. This session provided a detailed overview of various trends and typologies related to ML/TF and sanctions evasion through the use of crypto-assets, including issues such as undeclared capital gains, scams, terrorist financing, dark web activities, misuse of online games, ransomware, and organised crime. The sessions highlighted the specific analysis and investigation techniques required by Tracfin, integrating both traditional and blockchain-specific methods.

Finally, the advanced-level training held in January 2025 focused on enhancing the blockchain investigative capabilities of 37 Tracfin specialists. Topics included the creation and use of crypto-wallets, the mechanics of cryptocurrencies and privacy coins, distinctions between hosted and unhosted wallets, and obfuscation techniques involving mixers and bridges. Decentralised finance (DeFi) was also explored, with an emphasis on smart contract functionality, misuse detection, and navigating DeFi platforms. Additionally, the training addressed emerging threats, providing participants with both practical and theoretical knowledge for tackling blockchain-based financial crimes.

The comprehensive series of training sessions highlighted Tracfin’s commitment to ensuring its agents are well-prepared to handle the complexities of ML/TF involving crypto-assets and decentralised finance.

To sustain these efforts, the project will continue working closely with Tracfin representatives on the development of a practitioner’s manual offering operational guidance for analysts and investigators on the steps required to process ML/TF cases involving crypto-assets.

The activities were organised within the framework of the Technical Support Instrument (TSI) project on “Development of Financial Intelligence Unit’s expertise focused on digital finance and virtual assets”, funded by the European Union and the Council of Europe, and implemented by the Council of Europe.