Financial Crime World

Anti-Money Laundering Officer (AMLO) Appointment Requirements in Germany

The German Money Laundering Act (GwG) outlines specific requirements for appointing an Anti-Money Laundering Officer (AMLO). The following guidelines must be adhered to by obliged entities:

Appointment Requirements

  • Obligatory Appointments: Obliged entities must appoint an AMLO and a deputy at the management level.
  • Independence and Effectiveness: The individuals appointed must be capable of performing their duties independently and effectively.
  • Multiple Deputies: Multiple deputies may be appointed if necessary, ensuring collaboration.

Role and Function

  • Subordination: The AMLO serves as an instrument of the management board and is organizationally and technically subordinate to the competent member of the management.
  • Reporting Lines: The AMLO and deputy are subject to the management’s right to issue instructions but must also have direct reporting lines to management and, where applicable, the supervisory board.

Independence in Reporting

  • Exemptions from Management Instructions: In certain cases, such as reporting under section 43 of the GwG or responding to FIU requests, the AMLO is not subject to management instructions.

Resources and Rights

  • Sufficient Resources: The AMLO must have adequate material and personnel resources to perform their duties effectively, reflecting the size and risk profile of the entity.
  • Authority to Act: They have the authority to act and issue instructions within the scope of their role.

Employment Protection

  • Protection from Disadvantage: The AMLO and their deputy are protected in their employment; they must not suffer any disadvantage due to the performance of their functions.
  • Justifiable Reasons for Termination: Termination of their employment is inadmissible unless there are justifiable reasons for immediate termination without notice.

Training and Contact

  • Employee Instruction: The AMLO is responsible for instructing employees on AML obligations.
  • Contact Point: They serve as the contact point for BaFin, prosecuting authorities, and the FIU.

By adhering to these guidelines, obliged entities can ensure compliance with anti-money laundering regulations in Germany.