Financial Crime World

Germany Fails to Meet Anti-Money Laundering Standards Despite Efforts to Improve Compliance

Despite recent efforts to improve compliance with anti-money laundering regulations, Germany has yet to meet international standards in preventing money laundering and terrorist financing.

Progress Made, But More Work Needed

According to BaFin, the country’s Federal Financial Supervisory Authority, companies in the financial industry have made progress in recent years. However, further improvement is needed to meet international standards.

Implementation of Due Diligence Obligations

In accordance with section 51(8) of the Anti-Money Laundering Act (Geldwäschebekämpfungsgesetz-GWG), BaFin provides obligated persons and entities under its supervision with regularly updated interpretation and application instructions for the implementation of due diligence obligations and internal safeguarding measures in accordance with statutory provisions on the prevention of money laundering and terrorist financing.

Additionally, BaFin issues circulars on topics relating to the prevention of money laundering and terrorist financing.

Efforts to Improve Compliance

However, despite these efforts, Germany has failed to meet international standards in the fight against human trafficking and financial crime. According to Birgit Rodolphe, Chief Executive Director of Resolution and Prevention of Money Laundering at BaFin:

  • Companies must take their responsibility to prevent money laundering seriously.

Anti-Money Laundering Supervision

BaFin’s anti-money laundering supervision units are working tirelessly to monitor insurance undertakings’ efforts to prevent money laundering and terrorist financing. According to Carsten Sperl, responsible for this task at BaFin:

  • The authority is committed to ensuring that financial institutions play a key role in exposing criminal networks and preventing financial crimes.

Conclusion

While Germany has made progress in improving compliance with anti-money laundering regulations, there is still much work to be done to meet international standards. It remains to be seen whether the country will be able to strengthen its efforts to prevent money laundering and terrorist financing in the future.