Germany

New Documents

The Group of Seven Finance Ministers issued a joint communiqué following a meeting in Germany, highlighting their commitment to a coordinated sanctions response to Russia’s aggression and support for the Financial Action Task Force’s ongoing efforts to enhance beneficial ownership transparency.

Deutsche Bundesbank President Joachim Nagel delivered the keynote address at the International Economic Symposium, highlighting that sanctions in response to Russia’s invasion of Ukraine are distorting various supply chains.

Enforcement Actions

The Federal Financial Supervisory Authority of Germany ordered the Hessen, Germany-based bank to implement adequate internal anti-money laundering and counterterrorist financing controls.

Germany’s Federal Financial Supervisory Authority issued an order requiring the Berlin, Germany-based bank to take measures to remedy risk management shortcomings with regard to information technology and outsourcing management.


Important Facts

  • The U.S. State Department labels Germany as a jurisdiction of primary concern. Although not an offshore financial center, Germany is one of the largest financial centers in Europe. Germany is a member of the Eurozone, which makes it attractive to organized criminals and tax evaders. Indicators suggest that the jurisdiction is susceptible to money laundering and terrorist financing because of its large economy, advanced financial institutions and strong international connections. Although not a major drug-producing country, Germany continues to be a consumer and a major transit hub for narcotics. There is little data on the scale of activity, but Germany is estimated to have a large informal financial sector; informal value transfer systems such as hawala are used by immigrant populations accustomed to such systems in their home countries. Trends in money laundering include a decrease in cases involving financial agents. Cybercrime continues to challenge law enforcement and there has been an increase in cases of tax evasion, transnational collusive agreements and manipulations, and corruption and money laundering involving global financial institutions and corporations. Bulk cash smuggling by organized criminals also remains prevalent in Germany.
  • KYC Covered Entities: Banks, financial services, payment, and e-money institutions and their agents; financial enterprises; insurance companies and intermediaries; investment companies; lawyers, legal advisers, auditors, chartered accountants, tax advisers, and tax agents; trust and company service providers; real estate agents; casinos; and persons trading in goods
  • STR Covered Entities: Banks, financial services, payment, and e-money institutions and their agents; financial enterprises; insurance companies and intermediaries; investment companies; lawyers, legal advisers, auditors, chartered accountants, tax advisers, and tax agents; trust and company service providers; real estate agents; casinos; and persons trading in goods
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 992 (2013); Convictions: 882 (2013)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 5 High :
Largely Compliant : 24 Substantial :
Partially Compliant : 15 Moderate :
Non-Compliant : 5 Low :

BASEL i

Rank : 107/141
Score : 4.42/10

TRANSPARENCY INTERNATIONAL i

Rank : 9/179
Score : 80/100

Tax Justice Network i

Rank : 14/133
Score : 52/100