Money laundering – reporting by trade professionals

General information

In terms of precautionary action to prevent, as far as reasonably practicable, any attempt at money laundering or terrorist financing on the one hand, and to facilitate the tracking down of criminals and their networks on the other, the existing provisions of criminal law are supplemented by regulations which actively involve the participants of the economic and financial circuit in the fight against money laundering and terrorist financing.

Traders pursuant to section 365m1 paragraph 2 of the Gewerbeordnung 1994 (GewO 1994) are obliged to inform the national Financial Intelligence Unit of any suspicion of money laundering or terrorist financing.

The provisions of the Gewerbeordnung place a strong emphasis on the "know your customer principle" designed to remove the benefit of anonymity behind which offenders may hide. Due diligence thus includes, inter alia, the following obligations:

• Identification of the customer as well as of the beneficial owner
• Ongoing monitoring of the business relationship
• Retention of records

Enterprises affected

Traders pursuant to section 365m1 paragraph 2 of the Gewerbeordnung 1994 (GewO 1994).

Requirements

See Description of contents.

Deadlines

No special deadlines need be observed.

Competent authority

The Financial Intelligence Unit [Geldwäschemeldestelle] of the Ministry of the Interior and the trade authority locally competent for the business location in question.

Legal bases

Sections 365m and following of the Gewerbeordnung 1994 (GewO 1994)