MOF: Sectoral Risk Assessment to combat money laundering and terrorist financing

The Federal Ministry of Finance (MoF) published its Sectoral Risk Assessment (SRA) to combat money laundering and terrorist financing. The SRA analyses the risks of money laundering and terrorist financing associated with the misuse of legal persons and legal arrangements.

The sector-specific risk analysis is part of the National Risk Analysis. which is currently being updated under the leadership of the MoF. The goal is to raise risk awareness among all stakeholders in both the public and private industries and to enable the effective use of resources.

Entities subject to anti-money laundering regulations must take the results of the sector-specific risk analysis into account when preparing their own risk analysis. At the same time, they provide an important basis for the further development of risk-based preventive, supervisory, and regulatory measures.

The sector-specific risk analysis assesses the risks arising from the misuse of legal entities under private law, partnerships, and other legal structures (referred to internationally as “Legal Persons and Legal Arrangements”) for money laundering and terrorist financing in Germany. In addition, it examines comprehensive and overlapping phenomena such as real estate transactions via share deals or the use of shell companies and intermediary or transit companies.

The analysis was conducted under the joint leadership of the Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection. For the first time, extensive registry data was also analyzed to gain a deeper understanding of corporate structures in Germany.

As indicated on the Ministry’s German website, an English version of the report will be published soon.