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In May 2017, the Deutsche Bundestag adopted a draft law for the implementation of the Fourth European Union Anti-Money Laundering Directive, as well as to execute the new EU money transfer regulation, among others. This summer this new version of the German Anti-Money Laundering Act (GwG) became effective. There are a number of important changes in the revisions to the GwG. Among the most important are the establishment of an electronic transparency register, changes regarding the reporting of suspicious activity, and the new and universal obligation to conduct a risk analysis as part of a company’s risk management program. In addition to the revision of the GwG, significant adjustments have been made in related fields of law, in particular the German Limited Liability Companies Act, the German Banking Act, the German Payment Services Supervisory Act, the German Capital Investment Act, and the German Insurance Supervisory Act.
Ally Law member firm Melchers, with offices across Germany, has prepared a detailed overview of the material alterations to the Anti-Money Laundering Act that is a must-read for anyone doing business in Germany or with German companies. For instance, one of the most material changes is the establishment of an electronic “transparency register.” This register is intended to identify the beneficial owners of legal entities and registered commercial partnerships, all of which must record specified information in a central registry. The information required to be submitted to the registry is detailed and there are particular exceptions to certain of the requirements.
Further, other mandates issued by the new Act which do not actually change provisions within the GwG do require changes to provisions in other acts. As an example, the German Limited Liability Companies Act is now modified to require that a shareholders’ list which must be submitted to the registry and must be updated as changes occur in the shareholder structure.
Immediate action may be required by your company. Meet with your Ally Law member firm if you conduct business in Germany to determine how these new laws may impact you. Ally Law member firms have experienced and capable attorneys to guide you through corporate regulations and assure compliance with regional, federal, and international laws. For more information about our services in this area, contact us at yourally@ally-law.com.
Click here for the complete article by Dr. Andreas Decker of Ally Law member Melchers.
