Financial Crime World

Anti-Money Laundering Officer Requirements in Germany

The German Money Laundering Act (Geldwäschegesetz – GwG) outlines the requirements for appointing an Anti-Money Laundering Officer (AMLO) in Germany. This article provides an overview of these requirements, including appointment and qualifications, role and functioning, independence in reporting, employment protection, data usage, outsourcing, and exemptions.

Appointment and Qualifications

Key Requirements

  • Obliged entities must appoint an AMLO and a deputy at the management level.
  • These individuals must be capable of performing their duties independently and effectively.
  • Multiple deputies may be appointed if necessary, with collaboration ensured.

Role of the Management Board

The AMLO serves as an instrument of the management board and must be organizationally and technically subordinate to the competent member of the management.

Role and Functioning

Reporting Structure

  • The AMLO reports directly to top management.
  • The AMLO can submit reports or respond to requests for information without being subject to management instructions.

Authority and Access to Information

  • The AMLO has sufficient authority and access to necessary information and data to perform their role effectively.

Independence in Reporting

Reporting under Section 43(1) of the GwG

In certain cases, such as reporting under section 43(1) of the GwG or responding to information requests from the German Financial Intelligence Unit, the AMLO is not subject to management instructions.

Employment Protection

Employment Security

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

Non-Terminability Period

For a year after the end of their appointment, their employment cannot be terminated without just cause.

Data Usage

The AMLO can only use data and information for the purpose of performing their functions.

Outsourcing and Exemptions

  • Outsourcing the AMLO function is possible.
  • BaFin may grant exemptions from appointing an AMLO under specific conditions, though this is handled restrictively.