Tax & Legal

The Federal Cabinet today adopted the Common Action Plan against Organized Crime. It was jointly developed by the Federal Ministry of Finance, the Federal Ministry of the Interior, and the Federal Ministry of Justice and Consumer Protection.

The Council and Parliament reached a provisional agreement on stricter EU anti money laundering rules. The new rules will harmonize the existing framework and close possible loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.

On 11 October 2023, the Federal Cabinet adopted the draft of the Financial Crime Control Act (FCCA). The draft law is intended to fundamentally revamp the fight against financial crime, especially money laundering, in Germany.

Members of the European Parliament (MEPs) approved stricter rules to close existing gaps in combating money laundering, terrorist financing and evasion of sanctions in the EU.

Following two requests from Luxembourg for a preliminary ruling the European Court of Justice held that the national provision whereby the information on the beneficial ownership of companies incorporated within the EU is accessible in all cases and to any member of the general public to be invalid.

On 25 August 2022, the German Federal Ministry of Finance (MOF) published the key points for a more powerful fight against financial crime and a more effective enforcement of sanctions in Germany. With the planned measures it is envisaged to bundle the most important responsibilities and competences under the umbrella of a new federal authority.

The Transparency Register – as defined in Section 18 of the Money Laundering Act – is a legally prescribed register, which records beneficial interests in companies, partnerships and foundations, which themselves operate on the financial markets. The register became effective on 1 October 2017.

On 22 February 2017 the federal government approved a draft bill to implement both the fourth EU money laundering directive and the EU regulation on the transfer of funds as well as to reorganise the Central Financial Transactions Investigation Agency. The intention is to up-date and strengthen measures developed to prevent money laundering and the financing of terrorism.