Chelsea reportedly face a one-window ban for their signing of Traore, who allegedly played 25 matches for Chelsea youth teams without being registered by the FA.
According to the report by Mediapart, one of the worldwide outlets publishing the documents from Football Leaks, FIFA's Integrity & Compliance Department has proposed sanctions on Chelsea of being unable to sign any player for four transfer windows, effectively two years, as well as a fine.
Five Premier League clubs are facing the threat of being hit with a transfer ban as part of Fifa's investigation into the signing of foreign players under the age of 18.
According to Mediapart, Fifa's integrity and compliance unit has recommended Chelsea are handed a transfer ban covering four transfer windows, as well as a fine of £45,000.
Chelsea themselves have denied any wrongdoing in the signing of Traore, who left the Blues to join Lyon in 2017.
Other than releasing a short statement in which they insisted they are cooperating with Fifa, Chelsea would not comment on the report or the case.
"The proceedings are ongoing and, to date, no decision has been passed by the Fifa judicial bodies", football's world governing body Fifa said in a statement. The signing (s) can only be carried out if the player (s) in question's parents migrated to the country for non-footballing reasons or if both the club and the player are based within 50 km of an global border. Thus, the clubs are to be presumed innocent unless decided otherwise.
Spanish clubs Real Madrid, Barcelona and Atletico Madrid have fallen foul of the rules in the past, with all three serving transfer bans for violations.
"No further information can be provided as the cases are ongoing".
And it was since then that Federation Internationale de Football Association are said to have started their investigation on Chelsea following the alleged illegal signing of young players.
Chelsea have also admitted they paid his mother £155,000, as well as a further £13,000 to the club she chaired - AJE Bobo-Dioulasso - in April 2011 to allow them first refusal over his signature. They won back-to-back domestic doubles and a Champions League title. They appealed without success to the Court of Arbitration for Sport (CAS).