Germany Strengthens Fight Against Money Laundering with New Legislation
Crackdown on Illicit Financial Activities
Germany has introduced new laws aimed at enhancing its anti-money laundering (AML) policies, providing citizens with easier access to beneficial ownership information while boosting the powers of Financial Intelligence Units (FIUs). The legislation includes provisions for greater transparency and accountability in financial transactions.
Key Provisions:
- Immediate Access to Beneficial Ownership Information: Citizens will have direct, unfiltered, and free access to beneficial ownership information held in national registries, both domestically and at the European Union level.
- Comprehensive Data: Databases will include data dating back at least five years, providing a more comprehensive picture of financial activities.
- Enhanced FIU Capabilities: FIUs will be empowered with enhanced capabilities for analyzing and detecting money laundering and terrorist financing cases, as well as the authority to suspend suspicious transactions.
- Obligated Entities: Banks and real estate agents will be required to conduct wider-reaching due diligence on customers’ identities before reporting any suspicious activities to competent authorities.
Top-Tier Professional Football Clubs Under Scrutiny
Top-tier professional football clubs involved in high-value financial transactions with investors or sponsors will have to verify their customers’ identities, monitor transactions, and report any suspicious activity to FIUs from 2029.
EU-Wide Limit on Cash Payments
The legislation sets an EU-wide limit of €10,000 on cash payments, except between private individuals in a non-professional context.
Central Watchdog Authority Established
Germany has established the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) to oversee the implementation of these new rules. AMLA will be based in Frankfurt and will supervise the riskiest financial entities, intervene in cases of supervisory failures, mediate disputes between supervisors, and oversee the implementation of targeted financial sanctions.
Adoption by European Parliament
The new legislation has been adopted by the European Parliament with significant majorities, marking a decisive step towards strengthening Germany’s fight against money laundering and terrorist financing. The laws still require formal adoption by the Council before publication in the EU’s Official Journal.