Information on money laundering prevention

The new Money Laundering Act (GwG ) on the tracing of profits from serious criminal offences has been in force since 26 June 2017. Instead of 17 regulations, companies now have to comply with a total of 59 requirements for the prevention of money laundering activities. The aim of the new regulations is to prevent terrorist financing and money laundering under the guise of legal businesses. The law affects, for example, estate agents, goods traders and legal service providers who act on behalf of their clients. These are referred to as "obliged entities" in the Money Laundering Act and are at the centre of money laundering prevention.

What exactly is money laundering?

Money launderers channel assets generated through illegal business into the normal economic cycle via a bogus company. In this way, for example, income from business with drugs or gambling is concealed. In addition to this aspect of money laundering, the AMLA also covers the hidden financing of terrorist groups.

WHAT DOES THE MONEY LAUNDERING ACT REQUIRE?

The Money Laundering Prevention Act specifies certain cases in which obliged entities must obtain certain information about their business partners. In addition, individuals affected by the legislation should take measures to recognise indications of suspected money laundering at an early stage. In principle, action should be taken on a risk-oriented basis. Real estate agents, for example, must familiarise themselves with the typical risks in their area of activity and close any gaps in the system through targeted measures.

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