Germany’s New AML Authority and FATF Mutual Evaluation Report

Coinfirm’s Regulatory Affairs Department has summarised key crypto regulatory moves in the blockchain-embracing market of Germany in August, those being the:

• New AML Authority: the Higher Federal Authority for Combating Financial Crime (BBF)
• The FATF’s Mutual Evaluation Report of Germany

New AML Authority: BBF

German Finance Minister presented the key points of a plan for fighting financial crime and enforcing sanctions more effectively.

The key points of focus are:

1. Bundling core competencies under one roof
2. Training highly qualified financial investigators
3. Promoting the digitalisation and linking of registers

The new federal authority for combating financial crime will be called the Higher Federal Authority for Combating Financial Crime (BBF) and will cover the following functions:

• Investigations into large and complex cases of financial crime (especially international money laundering)
• Operational responsibility for implementing sanctions
• Analysis of suspicious transaction reports
• Coordination of supervisory activities in the non-financial (DNFBP) sector

The new federal authority will cover the above functions with three independent pillars:

• Federal Police Office for Financial Crime (BFKA)
  • will investigate more complex cases
• Financial Intelligence Unit (FIU)
  • will cooperate closely with BFA on suspicious transaction reports
• Central office for anti-money laundering supervision

FATF’s Mutual Evaluation Report of Germany

The FATF Mutual Report Evaluation on Germany shows that Germany achieved positive effectiveness ratings for 4 out of 11 ratings.

This result puts Germany in 25^th place out of 133 countries assessed. The report goes into detail of what elements Germany needs to improve. The improvement areas are general AML issues, with the virtual assets framework being mentioned under good practices. Specifically, the report concludes that ‘larger VASPs’ have a good understanding of ML/TF risks and ‘apply adequate preventive measures’.