Anti-Money Laundering Regulations in Germany: A Guide for Businesses
Table of Contents
- Suspicious Transaction Reporting (STR)
- Annual Reports
- Exposures and Loans
- Recording and Retention Requirements
- Penalties for Non-Compliance
Suspicious Transaction Reporting (STR)
Obliged entities in Germany must report suspicious activities to the Financial Intelligence Unit (FIU). This can be done electronically through the “goAML” system. The key points for STR are:
- Reporting timeframe: Reports must be submitted as soon as possible after detection.
- Person in charge: The AML officer is usually responsible for submitting the report.
- Documentation: BaFin permits making copies of checked documents and storing them in digital form.
Annual Reports
Financial institutions operating in Germany must submit annual reports to BaFin. These reports should include:
- Balance sheets
- External audit reports
- Major changes in management board composition
Exposures and Loans
Entities with exposures or loans of over €1 million are required to report these to BaFin.
Recording and Retention Requirements
Obliged entities must record and store data for at least five years, but no longer than ten years. This includes:
- Transaction records
- Customer information
- Correspondence
Penalties for Non-Compliance
Failing to comply with AML regulations in Germany can result in severe penalties, including:
- Fines: Up to €5 million
- License termination
- Seizure of assets
- Criminal liability
Additional Resources
For more information on AML regulations in Germany, please refer to the following resources: