1. Are there any sanctions imposed against Germany?
There are no sanctions imposed against Germany.
2. What are the regulated institutions in Germany?
Federal Financial Services Supervisory Authority, German Deposit Protection Fund, Single Supervisory Mechanism (SSM), Deutsche Bundesbank,Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA).
3. Who are the local regulatory authorities in Germany and which government authorities are responsible for the investigation and prosecuting money laundering criminal offenses?
The Federal Financial Supervisory Authority (BaFin) Federal Ministry of Foreign Affairs, Federal Ministry of Justice, Federal Ministry of the Interior, Federal Criminal Police Office, Financial Intelligence Unit (FIU), Federal Criminal Investigative Service (Bundeskriminalamt or BKA), State Attorney (Staatsanwaltschaft)
4. What is the status of Germany’s FATF?
Germany is the member of FATF since 1990. The country’s legislation is fully incorporated with the Financial Action Task Force (FATF) recommendations. The FATF accepted at the June 2014 meeting that Germany could be excluded from the regular follow-up process. In February 2010, as a result of the mutual evaluation report, it was taken back to the regular follow-up process.
5. Which global regulations Germany have to comply with?
Because of Germany is in the European Union, they have to comply with EU sanctions. Also Germany is the member of FATF, they obliged to comply with the FATF 40 recommendations.
6. What are AML obligations of the businesses in Germany?
According to Section 4 of the Anti-money Laundering Act, obliged persons must implement an effective and proportionate risk management programme that includes risk analysis and internal safety measures . A member of management must be made responsible for the risk management programme. Furthermore, certain types of company are obliged to appoint an anti-money laundering officer. This applies to financial institutions, insurance companies, capital management firms and gambling service providers.
7. What are the local AML laws and regulations in Germany?
The key legislative provisions concerning money laundering, terrorism financing and fraud in Germany are for money laundering and terrorism financing: the Anti-money Laundering Act, the Criminal Code (Sections 89c and 261), the Banking Act (Sections 6a, 24c and 25g to 26), the Act on the Supervision of Insurance Undertakings (Sections 52 to 55) and for fraud, the Criminal Code (Sections 263 to 265e).
8. What are the penalties for failure to comply with anti money laundering law in Germany?
Money laundering is punishable by imprisonment of between three months to five years. The penalty increases to six months to 10 years if the crime was committed on a commercial or organised basis in a continued manner. A reduction applies if committed with gross negligence.
9. What are the contact details of the relevant regulators in Germany?
Servicezentrum Finanzsanktionen D-80281 München
T: (+49) 89 2889 3800
Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA)
Frankfurter Strasse 29 – 35 D-65760 Eschborn
T: (+49) 61 96 908 0
10. Are violations of anti-money laundering obligations also subject to criminal sanctions?
Section 17 of the Foreign Trade and Payments Act states that a prison sentence of between one and ten years can be imposed on anyone who violates an ordinance which serves to implement a UN or EU sanction if this violation is related to specific goods listed in part 1 of the export list.
Section 18 of the Foreign Trade and Payments Acts states that a prison sentence of between three months and five years can be imposed on anyone who violates other provisions of the Foreign Trade and Payments Act or the Foreign Trade and Payments Ordinance. In specific cases, only fines may be charged.
11. What can obliged institutions do to prevent money laundering and to comply with AML regulations?
In order to reduce the risk of money laundering, obliged organizations need to know who their customers really are and identity their risks. There are Know Your Customer, Customer Due Diligence, Transaction Monitoring applications recommended by regulators. Sanction Scanner enables financial institutions in Germany to comply with Anti-money laundering laws locally and globally. Financial institutions meet AML requirements in customer recruitment processes with our AML Name Screening Software. Businesses can become compliant with BaFin regulations with Sanction Scanner solutions. You can contact us to get information about our AML solutions.