Strengthening Anti-Money Laundering and Counter-Terrorism Financing Efforts in Germany
The German government has introduced new regulations aimed at strengthening anti-money laundering (AML) and counter-terrorism financing (CTF) efforts. In this article, we will delve into the details of these regulations and their impact on obliged entities.
Regular Monitoring of Internal Safeguards
As part of its effort to combat money laundering and terrorist financing, the German government has ordered obliged entities to regularly monitor and update their internal safeguards. These measures include:
- Developing internal principles, procedures, and controls
- Appointing a money laundering reporting officer
- Conducting ongoing training for employees
These requirements apply to all obliged entities, regardless of their size or nature of business.
Data Processing Systems for Suspicious Transactions
Obliged entities under section 2(1) nos. 10 to 14 and 16 are required to operate data processing systems that enable them to identify suspicious transactions in gambling operations and via a gambling account.
Ensuring Employee Confidentiality
The government has emphasized the importance of ensuring employee confidentiality when reporting contraventions of AML and CTF law. Obliged entities must make arrangements to ensure that employees can report such contraventions while maintaining their identity confidential.
Cooperation with Authorities
Obliged entities are required to provide information to the German Financial Intelligence Unit (Zentralstelle für Finanztransaktionsuntersuchungen) or other competent authorities upon request, regarding their business relationships with certain individuals.
Supervisory Authority’s Power and Exemptions
The government has given supervisory authorities the power to issue orders to obliged entities to implement necessary internal safeguards in individual cases. Additionally, the supervisory authority may exempt an obliged entity from the obligation to appoint a money laundering reporting officer if it is guaranteed that there is no risk of information loss or deficits on account of a separation of duties in the company structure.
Conclusion
The new regulations aim to strengthen Germany’s AML and CTF efforts and ensure compliance with international standards. The government has emphasized the importance of cooperation between obliged entities, supervisory authorities, and law enforcement agencies to combat these threats effectively.