Germany is becoming a money laundering paradise: Northern Germany's move to combat it!

Germany is becoming a money laundering paradise: Northern Germany's move to combat it!

In Germany it is estimated that around 100 billion euros are “laundered” from criminal transactions every year. A topic that is not only hotly debated in the political arena, but is also very much in the focus of society. According to that Northern Courier Germany is considered a money laundering paradise. The federal state of Mecklenburg-Western Pomerania, which is calling for targeted measures to combat financial crime, is particularly hard hit.

In the coalition agreement, the federal government promised to take decisive action against money laundering and financial crime. The planned measures include the bundling of federal competencies and improved exchange and cooperation between the federal and state governments. This also includes cooperation with national and international organizations as well as the European supervisory authority AMLA.

Coordination in the North

The situation is particularly precarious in northern Germany. The North German finance ministers from Mecklenburg-Western Pomerania, Lower Saxony, Schleswig-Holstein, Hamburg and Bremen have already agreed on a stronger coordination role for the federal government. Schleswig-Holstein will also have one in 2024 Anti-Money Laundering Task Force brought into being. This task force is important for networking and exchange between the police, tax investigators and public prosecutors. Finance Minister Silke Schneider emphasizes how important it is for all actors to work together to efficiently prosecute money laundering cases, especially in connection with organized crime.

But the challenge remains enormous. The Federal Audit Office has sharply criticized the supervision of money laundering in Germany. The current framework conditions do not meet the legal requirements, which is why the fight against money laundering and terrorist financing is not effective. A lack of staff and controls is seen as a key problem.

New structures and contact persons

In order to better meet constantly changing requirements, a central office for money laundering issues was set up in the Ministry of Finance in Schleswig-Holstein. The aim of this restructuring is to strengthen cooperation and regular exchanges between the relevant authorities. At the annual anti-money laundering conference, which took place in Kiel in July, various actors came together to discuss current developments and consolidate networks.

At the European level, the new EU authority AMLA started its work to reform anti-money laundering supervision in the EU and improve cooperation between national central authorities. However, Schneider warns that the federal government is also required to take necessary measures to combat money laundering, including the creation of a central authority structure. The planned federal office to combat financial crime, which was considered in the last legislative period, has not been implemented and progress at the federal level has stagnated.

In summary, it can be said that while great efforts are being made at several levels and by various actors, the fight against money laundering in Germany is still far from having the desired success. It remains all the more important that the federal and state governments work hand in hand to meet the challenges in this important area. This is perhaps the only way to close the dark chapter of money laundering once and for all.