Germany Earns Positive Marks for Anti-Money Laundering Efforts

Country Report Highlights Strengths and Areas for Improvement

The Financial Action Task Force (FATF) has published its country report on Germany’s efforts to prevent money laundering and terrorist financing, praising the Federal Financial Supervisory Authority (BaFin) for its strong understanding of risks and effective supervisory system.

Key Findings

• BaFin’s work in preventing money laundering was deemed satisfactory by international assessors from the FATF.
• The authority has a differentiated risk-based approach to supervision and adequate frequency, intensity, and scope of its supervisory actions.
• Areas for improvement include greater monitoring of the private sector and more effective implementation of preventative measures in the financial sector.

BaFin’s Response

BaFin welcomed the recommendations and noted that it has already implemented or plans to implement several projects aimed at strengthening its supervision and enforcement activities. These include:

• Increasing staffing levels in anti-money laundering supervision
• Creating additional supervisory divisions

Assessment Process

Germany was assessed by the FATF for the first time since 2010, with the assessment taking place over several years. BaFin provided comprehensive information and documents to the assessors.

Ratings and Recommendations

Germany’s rating on effectiveness was found to be in line with the average of other countries assessed, with moderate levels of effectiveness in two key areas:

• Supervision
• Preventative measures in the private sector

The publication of the country report marks the completion of Germany’s FATF assessment process. Next year, the country will issue its first report on progress under the follow-up process.