Anti-money laundering rules in Germany do not only concern banks. Companies outside the financial sector must also examine whether they have obligations under the German Anti-Money Laundering Act (Geldwäschegesetz, GwG). A business that sells vehicles, precious metals or works of art, for example, may be required to identify its customers, to document transactions and to report suspicious activity to the German Financial Intelligence Unit (FIU).
For managing directors, what matters is to know the actual obligations of their own business. A generic standard form is as inadequate as the assumption that smaller companies are exempt as a matter of principle.
Who is an obliged entity?
The starting point is the catalogue in § 2 GwG. Apart from credit and financial institutions, it covers, among others, certain legal and tax advisory professions, real estate agents, organisers and brokers of games of chance, dealers in goods, art brokers and certain art storage providers. The requirements differ by sector and activity. Not every obligation applies to every transaction in the same way. The status as an obliged entity must be distinguished from the duty to operate full risk management. The due diligence obligations triggered by an individual transaction require a separate assessment.
Which thresholds currently apply to dealers in goods?
For the risk management and the transaction-related duties of dealers in goods, art brokers and art storage providers, § 4 (5) GwG and § 10 (6a) GwG are decisive. In simplified terms, cash payments of at least EUR 10,000 are relevant for ordinary goods, whether the payment is received or made. For the precious metals covered by the Act, the cash threshold is already EUR 2,000. In the art trade and for the art brokers and art storage providers covered, transactions of at least EUR 10,000 are relevant regardless of whether payment is made in cash or otherwise.
Economically connected transactions may have to be aggregated, so splitting a payment into smaller instalments does not reliably remove the obligations. These thresholds are not a general cash limit under current German law. They determine above all when certain due diligence and organisational duties are triggered, and they do not apply to every company in the same way.
What do companies have to do in practice?
Where risk management is required, the company must identify, assess and document the risks of its business in a risk assessment (§ 5 GwG) and derive appropriate internal safeguards from it (§ 6 GwG). Responsibility lies with a designated member of the management. Typical questions concern the customer structure, countries of origin, sales channels, cash transactions and unusual payment flows. Internal safeguards may be outsourced, but the responsibility for them remains with the company.
For the transactions covered, the contracting party and any person acting on its behalf must be identified, powers of representation must be verified and the beneficial owner must be established. The beneficial owner is not simply every managing director. Conspicuous circumstances must not remain unexamined. The information obtained and the steps taken must be properly recorded and retained. Which measures are appropriate depends on the risk. Higher risks can trigger enhanced due diligence.
When is a suspicious activity report required?
The reporting duty under § 43 GwG is not limited to transactions above a certain value. Facts indicating a connection with money laundering or terrorist financing must be reported to the FIU without delay, even where small amounts are involved. Proof to a criminal standard is not required, but the assessment must be based on concrete circumstances. A transaction that is merely unusual does not by itself trigger a report. Special exceptions apply to legal advice and representation in court. A criminal complaint to the police does not replace the report to the FIU.
Reports are filed electronically through the FIU’s goAML portal (§ 45 GwG). Obliged entities must register with the FIU irrespective of whether they currently have a report to file. For dealers in goods outside the categories of goods expressly named in § 59 (6) GwG, the registration requirement applies at the latest from 1 January 2027. Dealers should check whether the deadline already applies to them. A deferred registration duty does not suspend the duty to report.
After a report, the transaction may in principle only be carried out under the conditions of § 46 GwG, and the customer must generally not be informed of the report or of a related investigation (§ 47 GwG). The staff concerned should know these rules before a suspicious case arises.
Does every business need a money laundering officer?
No. § 7 GwG requires the appointment directly only for certain obliged entities. In other sectors the supervisory authority may order an appointment, including by general order for certain dealers in high-value goods. The requirements of the competent supervisory authority must therefore be checked alongside the statute. Even where tasks are outsourced, the responsibility of the management remains.
Transparency register
Independently of the status as an obliged entity, legal persons under private law and registered partnerships must notify their beneficial owners to the transparency register under § 20 GwG. Certain foreign entities are covered as well. This obligation does not lapse because the company accepts no cash, and it is a separate procedure from a suspicious activity report. A company that is not an obliged entity under § 2 GwG may therefore still have obligations under the Act.
What changes from 2027?
The EU Anti-Money Laundering Regulation (EU) 2024/1624 will apply in principle from 10 July 2027. It harmonises key obligations across the Union, introduces an EU-wide limit of EUR 10,000 for commercial cash payments, with Member States free to set stricter limits, and reorganises the range of activities covered. Until then, the current provisions of the GwG remain decisive. Companies should nevertheless prepare their procedures for the coming rules in good time. We assist in determining which obligations apply, in setting up workable internal procedures and in defending against administrative fine proceedings brought against the company or its managers.