Financial Crime World

Germany Takes Aim at Financial Crime with Sweeping Restructure Package

In a significant effort to revamp its approach to combating financial crime, Germany’s Federal Cabinet has adopted a comprehensive package of laws aimed at repositioning structures and institutions for more effective fighting of money laundering and other financial crimes.

Key Measures

  • Follow the Money Strategy: Financial investigations will adopt a “follow the money” strategy, leveraging data analysis and cutting-edge digital technology to track down criminals and sanctioned individuals.
  • Combination of Pillars: The three key pillars of fighting money laundering - analysis, investigation, and oversight - will be combined under one umbrella.

Strengthening Institutions

  • Federal Office for Fighting Financial Crime (BBF): Will establish a dedicated money laundering investigation hub, enabling authorities to tackle more effectively significant cases of international money laundering linked to Germany.
  • Transfers: The Central Office for Financial Transaction Investigations (FIU) and the Central Office for Sanctions Enforcement (ZfS) will be transferred to the BBF in mid-2025.
  • New Central Office for Money Laundering Oversight: Will be created, tasked with developing uniform guidelines for supervisory authorities across all sectors.

Additional Measures

  • Register of Real Estate Transactions: A register providing authorities with digital access to up-to-date property data when combating money laundering and enforcing sanctions.
  • Procedure for Administrative Asset Investigations: Enables authorities to identify the economic beneficiaries of suspect assets or trace the source of funds used to acquire them.
  • Deprivation of Property: Authorities will be able to order the deprivation of property in cases where ownership or beneficiary cannot be established.

Next Steps

  • Proposed Regulations: The Federal Government aims to present proposed regulations on administrative asset investigations in the near future, as part of its ongoing efforts to enhance Germany’s financial crime-fighting capabilities.