German Act to implement the 5th EU money laundering directive

69

The German parliament has completed the amendment of its money laundering act as proposed by the Finance Committee and it includes a lot of changes to the existing legislation, most especially the nation’s money-laundering and terrorist financing act and those concerning the financial sectors. The following is an overview of the changes:

Broadening the Circle of Obligated Persons

The law, according to section 2 has compelled service providers operating in crypto-financial systems to become obligated persons. Also, the crypto area has been subjected to the control and monitoring of the Federal Financial Supervisory Authority. Crypto business no longer has separate obligations compared with other financial services, however, some specific rules apply to financial services but do not apply to crypto service providers.

Lawyers

Lawyers are also going to become obligated persons in the future, and are required to identify clients suspected of money-laundering.

Real Estate Agents

In the future, real estate agents will become obligated persons to GwG in the commercial brokerage of the purchase or sale of real estate, but also in the commercial brokerage of rental or lease agreement including commercial apartments.

Art Mediator and art storage Holder

Traders of goods and art brokers, and art storage holders with storage in duty-free areas shall become obligated persons, but only to implement effective risk management and general due diligence for the transaction of EUR 10,000 or above.

Public auctions by authorities

Courts, authorities, institutions, and corporations operating under public law will be obliged to reporting and identification of obligations under money laundering law under the public option policy for cash payments of EUR 10,000 or more per item.

Other areas edited in the article are:

Limitation of the circle obligated persons, broadening the obligation to prevent money laundering, upgrading the transparency register by making it accessible to all members of the public in the future.