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Anti-Money Laundering (AML) Requirements in Germany

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Thresholds for Cash Payments

In Germany, there are specific thresholds for cash payments that trigger anti-money laundering requirements. The following thresholds apply:

  • EUR 1,000: For cash payments, the threshold is EUR 1,000.
  • EUR 2,000: For precious metals and gambling, it’s EUR 2,000.
  • EUR 1,000: For cryptocurrencies, the threshold is also EUR 1,000.

Anti-Money Laundering Requirements for Cryptocurrency Industry

Since January 2020, crypto custody business has been regulated by law in Germany. As a result, anti-money laundering requirements apply to:

  • Financial service providers offering crypto custody business: These entities must comply with AML regulations.
  • Obligated parties in case of a transfer of crypto assets: If the value of the transferred assets exceeds EUR 1,000, these parties are also subject to AML requirements.

NFTs as Crypto Assets

In Germany, Non-Fungible Tokens (NFTs) can be qualified as crypto assets. This means that money laundering regulations can be applied to NFT transactions.

Compliance Programs for Financial Institutions and Designated Businesses

To comply with AML regulations, all obliged entities must implement procedures that include:

  • Efficient risk-management system: To identify and mitigate potential risks.
  • Due diligence: To verify the identity of customers and assess their risk profile.
  • Reporting: To report suspicious transactions to the relevant authorities.
  • Recordkeeping obligations: To maintain accurate records of all transactions.

Recordkeeping and Reporting Large Currency Transactions

In Germany, general due diligence obligations are triggered by cash transactions exceeding EUR 1,000 or other transactions exceeding EUR 15,000. For specific obliged entities, the thresholds deviate from these amounts.

Cross-Border Transactions Reporting Requirements

For cross-border transactions, the Foreign Trade and Payments Act and Ordinance apply in Germany. This entails reporting obligations that must be filed electronically to the Federal Bank of Germany, subject to certain deadlines.

By understanding these AML requirements, financial institutions and businesses can ensure compliance with German regulations and prevent money laundering activities.