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Germany to Establish New Regulatory Body to Combat Money Laundering

R Richard M. JULY 25, 2023 1 minute read

It has been reported that the German government will create a new regulatory body to combat money laundering and other financial crimes.

In order to control money laundering and other financial crimes, the German regulatory body will create a new authority called the Federal Bureau of Financial Intelligence. The new body will monitor and analyse money laundering and sanctions enforcement, which will be established next year. According to a finance ministry official, the target is to have 1,700 employees that will be located in Dresden and Cologne.

Last year, the FATF criticised Germany for not fighting money laundering vigorously enough despite Germany being one of the largest cash centres in the world. According to the assessment, Germany understands the risks but hasn’t done enough to combat them, especially when it comes to those who handle large sums of money, like estate agents.

Christian Lindner, Germany’s finance minister, responded that the authorities would be centralised, staff would be added, and technology will be modernised. A central office for sanctions enforcement and a main office for financial transaction investigations are currently responsible for monitoring potential money laundering and dispensing sanctions.

A draft bill proposed by the German finance ministry outlines that more than 700 million euros ($775.60 million) will be spent on implementing the law between 2024 and 2027.

According to government sources, the legislation contains a number of provisions, including a new investigation procedure for determining the origin of funds used to acquire suspicious assets of high value. As part of its training program, the Federal Bureau of Financial Intelligence will offer courses on combating money laundering in specific areas.

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