Germany Moves to Revamp Financial Crime Fighting Structures and Powers
In a significant effort to strengthen its fight against financial crime, Germany’s Federal Cabinet has approved a package of laws aimed at repositioning structures and institutions, improving methods and tools employed to tackle the issue.
Data-Driven Approach to Investigating Financial Crimes
The reforms are designed to take a more data-driven approach to investigating financial crimes, leveraging digital technology to target criminals and sanctioned individuals. This shift in strategy is expected to improve the effectiveness of Germany’s financial crime-fighting efforts.
Creation of Money Laundering Investigation Hub
At the heart of the plan is the creation of a money laundering investigation hub within the Federal Office for Fighting Financial Crime (BBF). This new unit will enable more effective prosecution of significant international money laundering cases linked to Germany. The BBF will also absorb the Central Office for Financial Transaction Investigations (FIU) and the Central Office for Sanctions Enforcement (ZfS) in mid-2025.
New Central Office for Money Laundering Oversight
A new Central Office for Money Laundering Oversight is being established, tasked with developing uniform guidelines for supervisory authorities across the non-financial sector to ensure a coordinated approach. The office will also oversee a register of real estate transactions, providing authorities with digital access to up-to-date data when fighting money laundering and enforcing sanctions.
Improving Administrative Asset Investigations
Additional measures aimed at improving the effectiveness of administrative asset investigations will also be introduced. These include:
- A procedure for identifying the “economic beneficiaries” of suspect assets
- The power to order the deprivation of property if it is not possible to identify the owner or beneficiary, within the bounds of constitutional law
Implementing Recommendations from Financial Action Task Force
The reforms are part of Germany’s efforts to deliver on priorities outlined in its coalition agreement and implement recommendations from the Financial Action Task Force’s assessment of the country’s financial crime-fighting measures. The proposed regulations are currently being investigated by government ministries and are expected to be presented in the near future.
Conclusion
Germany’s move to revamp its financial crime fighting structures and powers is a significant step forward in the fight against financial crime. By leveraging data-driven approaches, creating a money laundering investigation hub, and improving administrative asset investigations, Germany is demonstrating its commitment to staying ahead of criminal organizations and protecting its citizens’ financial interests.