|
Sanctions:
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report 2013:
While not an offshore financial center, Germany is one of the
largest financial centers in Europe. Germany is a member of the
eurozone, using a currency widely available in Europe, thus
making it attractive to organized criminals and tax evaders. Many
indicators suggest Germany is susceptible to money laundering
and terrorist financing because of its large economy, advanced
financial institutions and strong international linkages. Although
not a major drug producing country, Germany continues to be a
consumer and a major transit hub for narcotics.
Organized criminal groups involved in drug trafficking and other
illegal activities are sources of laundered funds in Germany.
There is little current data on the volume of these proceeds.
Terrorists have carried out terrorist acts in Germany and in other
nations after being based in Germany. Germany is estimated to
have a large informal sector, and informal value transfer systems
such as hawalas may be used by immigrant populations
accustomed to such systems in their home countries, but there is
little idea of the scale of this activity.
Trends in money laundering include electronic payment systems;
financial agents, i.e., persons who are solicited to make their
private accounts available for money laundering transactions; and
trade in rare metals, electronics, and energy. Free zones of
control type I, i.e., freeports, exist in Bremerhaven, Cuxhaven, and
Hamburg. Deggendorf and Duisburg are control type II Free
zones, i.e., unfenced inland ports.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: No
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: Combination approach
Are legal persons covered: criminally: NO civilly: YES
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
KYC covered entities: Credit, financial services, payment and e-
money institutions as well as their agents; financial enterprises;
insurance companies and intermediaries; investment companies;
lawyers, legal advisers, auditors, chartered accountants, tax
advisers and tax agents; trust or company service providers; real
estate agents; casinos; and persons trading in goods
REPORTING REQUIREMENTS:
Number of STRs received and time frame: 12,868 in 2011
Number of CTRs received and time frame: Not applicable
STR covered entities: Credit, financial services, payment and e-
money institutions as well as their agents; financial enterprises;
insurance companies and intermediaries; investment companies;
lawyers, legal advisers, auditors, chartered accountants, tax
advisers and tax agents; trust or company service providers; real
estate agents; casinos; and persons trading in goods
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 1,070 in 2011
Convictions: 903 in 2011
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Germany is a member of the Financial Action Task Force. Its most
recent mutual evaluation can be found here: http://www.fatf-gafi.
org/countries/d-i/germany/documents/mutualevaluationofgermany.
html
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In December 2012, German prosecutors opened investigations
against 25 employees of the Deutsche Bank. Five of them were
arrested on charges of serious tax evasion, money laundering
and attempted obstruction of justice in connection with emissions
certificate trading.
On December 29, 2011, a law on Optimizing the Prevention of
Money Laundering entered into force, tightening existing
regulations. The law provides for the expansion of due diligence
and reporting obligations in the non-financial sector. It also
increases punishments for money laundering violations. The law
also incorporates new provisions for e-money, enacting stricter
reporting requirements for all e-money transactions greater than
€100 (approximately $129). Finally, the new law expands the
number and type of obliged entities required to appoint a money
laundering officer. On November 8, 2012, the German Parliament
passed an amendment to Germany’s Law Against Money
Laundering to tighten control over the increasing number of
casinos and slot machines and to regulate online gaming, which
previously had been prohibited in Germany. The new law bans gift
cards, subjects online gaming companies to KYC rules, requires
online gaming operators to have better risk management, and
strengthens the power of regulators.
Tipping off is a criminal offense only if it is committed with the
intent to support money laundering or obstruct justice, and
applies only to previously-filed STRs. Otherwise, it is an
administrative offense that carries a fine of up to €100,000
(approximately $129,000) under the Money Laundering Act. Legal
persons are only covered by the Administrative Offenses Act, and
are not criminally liable under the Criminal Code. While Germany
has no automatic CTR requirement, large currency transactions
frequently trigger a STR. Germany should consider strengthening
the above provisions and also tightening the regulations on
domestic PEPs.
The numbers of prosecutions and convictions included in this
report only reflect cases in which the money laundering violation
carried the highest penalty of all the crimes of which the offender
was convicted. Germany has no federal statistics on the amount
of assets forfeited in criminal money laundering cases. Assets can
be forfeited as part of a criminal trial or through administrative
procedures such as claiming back taxes.
Germany should become a party to the UN Convention against
Corruption.
____________________________________________________
US State Dept Narcotics Report 2013 (introduction):
Germany is a consumer and transit country for narcotics, but not
a significant drug cultivation or production country. The German
government actively combats drug-related crimes, emphasizing
prevention programs and assistance to victims of drug abuse.
The Federal Cabinet adopted the new National Strategy on Drug
and Addiction Policy on February 15, 2012; it replaced the 2003
Action Plan on Drugs and Addiction. Cannabis remains the most
commonly consumed illicit drug in Germany. Germany is a major
manufacturer of legal pharmaceuticals, making it a potential
source of precursor chemicals used in the production of illicit
narcotics. Germany, however, strictly and effectively controls
precursor chemicals.
Led by the National Drug Commissioner, the Federal Ministry of
Health has the leading role in developing, coordinating, and
implementing Germany’s drug policies in programs, working in
close cooperation with others such as the Federal Ministry for
Economic Cooperation and Development, the Federal Ministry of
the Interior, the Federal Foreign Office and the Federal Ministry of
Finance. Policies stress prevention through education. The
Ministry, in close cooperation with other competent ministries and
federal states, funds numerous research and prevention
programs. Addiction therapy programs focus on drug-free
treatment, psychological counseling, and substitution therapy.
Since the mid-1980s, Germany considers substitution therapy an
important pillar in the treatment of opiate abuse. Currently, around
77,000 patients are undergoing substitution therapy in Germany.
600,000 individuals in Germany show risky consumption patterns
of cannabis, while 200,000 individuals show risky patterns with
regard to other illegal drugs, according to Federal Health Ministry
data. The number of drug-related deaths in Germany continued
to decrease in 2011 (the most recent year for which statistics are
available). A total of 985 people died as a result of consuming
illegal drugs (mostly heroin in combination with other drugs) in
2011, down from 1,237 in 2010. Over 21,300 users of “hard
drugs” (classified as non-cannabis substances) were newly
recorded in 2011, a 14.5-percent increase over 2010.
Extradition and mutual legal assistance treaties are in force
between the United States and Germany, as well as a customs
mutual legal assistance agreement.
Germany participates actively in bilateral cooperative
arrangements and European and international counter-narcotics
fora. Counternarcotics enforcement remains a high priority for the
Federal Office of Criminal Investigation, the Federal Office of
Customs Investigation, and state-level law enforcement agencies.
German law enforcement agencies work effectively with their U.S.
law enforcement counterparts on narcotics-related cases. The
United States anticipates that Germany and the United States will
continue this level of cooperation on counternarcotics into the
future.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 1)
Germany is a source, transit, and destination country for women,
children, and men subjected to sex trafficking and forced labor.
Approximately 85 percent of identified victims of sex trafficking
originated in Europe, including 20 percent from within Germany,
20 percent from Romania, and 19 percent from Bulgaria. Non-
European victims originated in Nigeria, other parts of Africa, Asia,
and the Western Hemisphere. The majority of sex trafficking
victims have been exploited in bars, brothels, and apartments –
approximately 36 percent of identified sex trafficking victims
reported that they had agreed initially to engage in prostitution.
Young German women were sometimes coerced into sex
trafficking by purported boyfriends in “loverboy” schemes.
Nigerian victims of trafficking are often coerced into prostitution
through voodoo rituals. Victims of forced labor have been
identified in hotels, domestic service, construction sites, meat
processing plants, and restaurants. Members of ethnic minorities,
such as Roma, as well as foreign unaccompanied minors who
arrived in Germany, were particularly vulnerable to human
trafficking. Individuals with disabilities, including those hard of
hearing, were vulnerable to forced labor. NGOs reported an
increase of domestic workers complaining of abuse in diplomatic
households. Various governments reported German citizen
participation in sex tourism.
The Government of Germany fully complies with the minimum
standards for the elimination of trafficking. The German
government increased its identification of labor trafficking victims
by approximately 75 percent, though the number of sex trafficking
victims it identified decreased. The government lengthened the
reflection period granted to suspected victims and provided
opportunities for certain victims of exploitation to remain in the
country during civil claims against their employers. The
government proactively identified a high proportion of trafficking
victims. Nevertheless, a German government study showed that
labor trafficking identification lagged behind sex trafficking victim
identification. Sentencing convicted trafficking offenders to terms
of imprisonment remained a significant deficiency in the German
government’s anti-trafficking efforts. Available statistics continued
to indicate the majority of convicted labor and sex trafficking
offenders were not required to serve time in prison, placing
victims at potential risk when convicted offenders were free after
trial.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2011
Overview: The threat from violent extremism remained elevated
and terrorist groups continued to target Germany in 2011.
Authorities estimated that roughly 250 individuals, both German
nationals and permanent residents, underwent paramilitary
training since the early 1990s at terrorist training camps primarily
located in the border regions of Afghanistan and Pakistan.
Approximately 135 of these individuals have returned to Germany;
10 were in custody at year's end. Germany investigated,
arrested, and prosecuted numerous terrorist suspects and
disrupted terrorist-related groups within its borders with
connections to al-Qa'ida (AQ), other radical Islamist, Kurdish
nationalist, and Nazi terrorist organizations. Authorities
conducted approximately 380 active investigations against 410
terrorists. Of these investigations, 95 were South Central Asia-
related. Throughout the year, a number of German terrorist
suspects released propaganda videos.
2011 Terrorist Incidents: On March 2, Arid Uka opened fire on U.
S. airmen at Frankfurt Airport, killing two and wounding two
others. On August 31, Uka's trial began in Germany. (In June, U.
S. prosecutors of the Southern District of New York filed a
complaint against Uka.)
Legislation and Law Enforcement: In December, Parliament
approved legislation to establish a Visa Warning Database
(VWD). The legislation allows the Federal Administrative Office to
cross-check the VWD with the Anti-Terror Database. On June 29,
Germany renewed its expiring post-9/11 counterterrorism laws for
four more years. Federal intelligence agencies increased access
to suspects' data in return for expanded parliamentary monitoring.
Arrests and prosecutions:
In the months of April and December, German police arrested a
total of five alleged AQ members and confiscated bomb-making
materials.
On May 9, courts found German citizen Rami Makanesi guilty of
membership in AQ and sentenced him to four years and nine
months' imprisonment. Makanesi had made a full confession.
On June 10, authorities granted parole to Red Army Faction
member Birgit Hogefeld. German courts convicted Hogefeld in
1996 for the murder of a U.S. soldier and her role in the following
bomb attack on the Rhein-Main U.S. air base in 1985. She
served 15 years of her life sentence.
On June 27, the Federal Administrative Court granted the
International Humanitarian Relief Organization a temporary
injunction that enabled it to continue operations until the issuance
of a final verdict on its July 2010 ban. The organization was
banned for funneling money to Hamas.
On November 2, prosecutors indicted German-Afghan citizen
Ahmad Wali Sidiqi, who is suspected of being a member of the
Islamic Movement of Uzbekistan, of training and participating in
combat in the Afghanistan/Pakistan border region.
In November and December, police arrested five persons on
charges related to the terrorist organization National Socialist
Underground, which is considered responsible for ten murders
from 2000 to 2007.
Also in November and December, German courts sentenced eight
members of the Global Islamic Media Front for spreading
propaganda for AQ, al-Qa'ida in Iraq, and Ansar al Islam.
Countering Terrorist Finance: Germany is a member of the
Financial Action Task Force and its Financial Intelligence Unit is a
member of the Egmont Group. German agencies filed 11,042
suspicious transaction reports in 2010 (2011 figures were not
available), designating 124 for suspected terrorist financing.
Germany remained a strong advocate of the United Nations
Security Council Resolutions' 1267/1989 and 1988 Taliban and
AQ sanctions regimes.
On April 6, courts sentenced German citizen Fatih K. to 22
months imprisonment for supporting the German Taliban
Mujahedin with money transfers. Fatih's confession and
disassociation from extremist ideas mitigated the sentence. On
March 9, courts sentenced Filiz Gelowicz, the wife of Sauerland
Group terrorist Fritz Gelowicz, to two and a half years in prison for
producing internet propaganda for the German Taliban Mujahedin
and the Islamic Jihad Union and transferring the equivalent of U.
S. $4,300 to terrorist contacts in Turkey.
For further information on money laundering and financial crimes,
we refer you to the 2011 International Narcotics Control Strategy
Report (INCSR), Volume 2, Money Laundering and Financial
Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.
Regional and International Cooperation: Germany is a founding
member of the Global Counterterrorism Forum and continued to
participate in multilateral counterterrorism initiatives.
Countering Radicalization and Violent Extremism: Germany has
numerous programs to counter violent extremism (CVE), mainly at
the state level. In North-Rhine Westphalia alone, there is the
“Ibrahim Meets Abraham” community relations initiative; the
Information and Education Center against Right-Wing Extremism;
the former National-Socialistic Center Vogelsang, which is now
used for cultural and civic education; the “No Racism in Schools”
and “Prevention of Extremism in Sports” efforts; as well as city
programs. Dortmund has a “Prevention of Extremism in the City of
Dortmund” program. The German Soccer Federation awards a
prize to organizations and persons who use their positions to work
for freedom, tolerance, and humanity and against intolerance,
racism, and hatred. Other cities, such as Cologne, host street
soccer tournaments to bring together non-governmental
organizations and at-risk youth.
The Ministry of Interior launched a security partnership between
Muslims in Germany and security authorities to increase
awareness of radicalization of young people. In January, the
state of Berlin issued a pamphlet countering extremist
interpretations of Islam and democracy, with text in German,
Turkish, and Arabic.
Despite a reported lack of participants, Germany extended its
HATIF (the Arab term for telephone) program to assist Muslim
violent extremists in reintegrating. The Interior Ministry also
continued a project first launched in 2001 to stop radicalization
among young right-wing offenders. The Ministry expanded the
program in 2007 to function in eight states. In 2011, the Interior
Ministry also continued a project in three states to counter
radicalization of young delinquents influenced by violent extremist
ideology.
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report 2013:
While not an offshore financial center, Germany is one of the
largest financial centers in Europe. Germany is a member of the
eurozone, using a currency widely available in Europe, thus
making it attractive to organized criminals and tax evaders. Many
indicators suggest Germany is susceptible to money laundering
and terrorist financing because of its large economy, advanced
financial institutions and strong international linkages. Although
not a major drug producing country, Germany continues to be a
consumer and a major transit hub for narcotics.
Organized criminal groups involved in drug trafficking and other
illegal activities are sources of laundered funds in Germany.
There is little current data on the volume of these proceeds.
Terrorists have carried out terrorist acts in Germany and in other
nations after being based in Germany. Germany is estimated to
have a large informal sector, and informal value transfer systems
such as hawalas may be used by immigrant populations
accustomed to such systems in their home countries, but there is
little idea of the scale of this activity.
Trends in money laundering include electronic payment systems;
financial agents, i.e., persons who are solicited to make their
private accounts available for money laundering transactions; and
trade in rare metals, electronics, and energy. Free zones of
control type I, i.e., freeports, exist in Bremerhaven, Cuxhaven, and
Hamburg. Deggendorf and Duisburg are control type II Free
zones, i.e., unfenced inland ports.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: No
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: Combination approach
Are legal persons covered: criminally: NO civilly: YES
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
KYC covered entities: Credit, financial services, payment and e-
money institutions as well as their agents; financial enterprises;
insurance companies and intermediaries; investment companies;
lawyers, legal advisers, auditors, chartered accountants, tax
advisers and tax agents; trust or company service providers; real
estate agents; casinos; and persons trading in goods
REPORTING REQUIREMENTS:
Number of STRs received and time frame: 12,868 in 2011
Number of CTRs received and time frame: Not applicable
STR covered entities: Credit, financial services, payment and e-
money institutions as well as their agents; financial enterprises;
insurance companies and intermediaries; investment companies;
lawyers, legal advisers, auditors, chartered accountants, tax
advisers and tax agents; trust or company service providers; real
estate agents; casinos; and persons trading in goods
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 1,070 in 2011
Convictions: 903 in 2011
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Germany is a member of the Financial Action Task Force. Its most
recent mutual evaluation can be found here: http://www.fatf-gafi.
org/countries/d-i/germany/documents/mutualevaluationofgermany.
html
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In December 2012, German prosecutors opened investigations
against 25 employees of the Deutsche Bank. Five of them were
arrested on charges of serious tax evasion, money laundering
and attempted obstruction of justice in connection with emissions
certificate trading.
On December 29, 2011, a law on Optimizing the Prevention of
Money Laundering entered into force, tightening existing
regulations. The law provides for the expansion of due diligence
and reporting obligations in the non-financial sector. It also
increases punishments for money laundering violations. The law
also incorporates new provisions for e-money, enacting stricter
reporting requirements for all e-money transactions greater than
€100 (approximately $129). Finally, the new law expands the
number and type of obliged entities required to appoint a money
laundering officer. On November 8, 2012, the German Parliament
passed an amendment to Germany’s Law Against Money
Laundering to tighten control over the increasing number of
casinos and slot machines and to regulate online gaming, which
previously had been prohibited in Germany. The new law bans gift
cards, subjects online gaming companies to KYC rules, requires
online gaming operators to have better risk management, and
strengthens the power of regulators.
Tipping off is a criminal offense only if it is committed with the
intent to support money laundering or obstruct justice, and
applies only to previously-filed STRs. Otherwise, it is an
administrative offense that carries a fine of up to €100,000
(approximately $129,000) under the Money Laundering Act. Legal
persons are only covered by the Administrative Offenses Act, and
are not criminally liable under the Criminal Code. While Germany
has no automatic CTR requirement, large currency transactions
frequently trigger a STR. Germany should consider strengthening
the above provisions and also tightening the regulations on
domestic PEPs.
The numbers of prosecutions and convictions included in this
report only reflect cases in which the money laundering violation
carried the highest penalty of all the crimes of which the offender
was convicted. Germany has no federal statistics on the amount
of assets forfeited in criminal money laundering cases. Assets can
be forfeited as part of a criminal trial or through administrative
procedures such as claiming back taxes.
Germany should become a party to the UN Convention against
Corruption.
____________________________________________________
US State Dept Narcotics Report 2013 (introduction):
Germany is a consumer and transit country for narcotics, but not
a significant drug cultivation or production country. The German
government actively combats drug-related crimes, emphasizing
prevention programs and assistance to victims of drug abuse.
The Federal Cabinet adopted the new National Strategy on Drug
and Addiction Policy on February 15, 2012; it replaced the 2003
Action Plan on Drugs and Addiction. Cannabis remains the most
commonly consumed illicit drug in Germany. Germany is a major
manufacturer of legal pharmaceuticals, making it a potential
source of precursor chemicals used in the production of illicit
narcotics. Germany, however, strictly and effectively controls
precursor chemicals.
Led by the National Drug Commissioner, the Federal Ministry of
Health has the leading role in developing, coordinating, and
implementing Germany’s drug policies in programs, working in
close cooperation with others such as the Federal Ministry for
Economic Cooperation and Development, the Federal Ministry of
the Interior, the Federal Foreign Office and the Federal Ministry of
Finance. Policies stress prevention through education. The
Ministry, in close cooperation with other competent ministries and
federal states, funds numerous research and prevention
programs. Addiction therapy programs focus on drug-free
treatment, psychological counseling, and substitution therapy.
Since the mid-1980s, Germany considers substitution therapy an
important pillar in the treatment of opiate abuse. Currently, around
77,000 patients are undergoing substitution therapy in Germany.
600,000 individuals in Germany show risky consumption patterns
of cannabis, while 200,000 individuals show risky patterns with
regard to other illegal drugs, according to Federal Health Ministry
data. The number of drug-related deaths in Germany continued
to decrease in 2011 (the most recent year for which statistics are
available). A total of 985 people died as a result of consuming
illegal drugs (mostly heroin in combination with other drugs) in
2011, down from 1,237 in 2010. Over 21,300 users of “hard
drugs” (classified as non-cannabis substances) were newly
recorded in 2011, a 14.5-percent increase over 2010.
Extradition and mutual legal assistance treaties are in force
between the United States and Germany, as well as a customs
mutual legal assistance agreement.
Germany participates actively in bilateral cooperative
arrangements and European and international counter-narcotics
fora. Counternarcotics enforcement remains a high priority for the
Federal Office of Criminal Investigation, the Federal Office of
Customs Investigation, and state-level law enforcement agencies.
German law enforcement agencies work effectively with their U.S.
law enforcement counterparts on narcotics-related cases. The
United States anticipates that Germany and the United States will
continue this level of cooperation on counternarcotics into the
future.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 1)
Germany is a source, transit, and destination country for women,
children, and men subjected to sex trafficking and forced labor.
Approximately 85 percent of identified victims of sex trafficking
originated in Europe, including 20 percent from within Germany,
20 percent from Romania, and 19 percent from Bulgaria. Non-
European victims originated in Nigeria, other parts of Africa, Asia,
and the Western Hemisphere. The majority of sex trafficking
victims have been exploited in bars, brothels, and apartments –
approximately 36 percent of identified sex trafficking victims
reported that they had agreed initially to engage in prostitution.
Young German women were sometimes coerced into sex
trafficking by purported boyfriends in “loverboy” schemes.
Nigerian victims of trafficking are often coerced into prostitution
through voodoo rituals. Victims of forced labor have been
identified in hotels, domestic service, construction sites, meat
processing plants, and restaurants. Members of ethnic minorities,
such as Roma, as well as foreign unaccompanied minors who
arrived in Germany, were particularly vulnerable to human
trafficking. Individuals with disabilities, including those hard of
hearing, were vulnerable to forced labor. NGOs reported an
increase of domestic workers complaining of abuse in diplomatic
households. Various governments reported German citizen
participation in sex tourism.
The Government of Germany fully complies with the minimum
standards for the elimination of trafficking. The German
government increased its identification of labor trafficking victims
by approximately 75 percent, though the number of sex trafficking
victims it identified decreased. The government lengthened the
reflection period granted to suspected victims and provided
opportunities for certain victims of exploitation to remain in the
country during civil claims against their employers. The
government proactively identified a high proportion of trafficking
victims. Nevertheless, a German government study showed that
labor trafficking identification lagged behind sex trafficking victim
identification. Sentencing convicted trafficking offenders to terms
of imprisonment remained a significant deficiency in the German
government’s anti-trafficking efforts. Available statistics continued
to indicate the majority of convicted labor and sex trafficking
offenders were not required to serve time in prison, placing
victims at potential risk when convicted offenders were free after
trial.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2011
Overview: The threat from violent extremism remained elevated
and terrorist groups continued to target Germany in 2011.
Authorities estimated that roughly 250 individuals, both German
nationals and permanent residents, underwent paramilitary
training since the early 1990s at terrorist training camps primarily
located in the border regions of Afghanistan and Pakistan.
Approximately 135 of these individuals have returned to Germany;
10 were in custody at year's end. Germany investigated,
arrested, and prosecuted numerous terrorist suspects and
disrupted terrorist-related groups within its borders with
connections to al-Qa'ida (AQ), other radical Islamist, Kurdish
nationalist, and Nazi terrorist organizations. Authorities
conducted approximately 380 active investigations against 410
terrorists. Of these investigations, 95 were South Central Asia-
related. Throughout the year, a number of German terrorist
suspects released propaganda videos.
2011 Terrorist Incidents: On March 2, Arid Uka opened fire on U.
S. airmen at Frankfurt Airport, killing two and wounding two
others. On August 31, Uka's trial began in Germany. (In June, U.
S. prosecutors of the Southern District of New York filed a
complaint against Uka.)
Legislation and Law Enforcement: In December, Parliament
approved legislation to establish a Visa Warning Database
(VWD). The legislation allows the Federal Administrative Office to
cross-check the VWD with the Anti-Terror Database. On June 29,
Germany renewed its expiring post-9/11 counterterrorism laws for
four more years. Federal intelligence agencies increased access
to suspects' data in return for expanded parliamentary monitoring.
Arrests and prosecutions:
In the months of April and December, German police arrested a
total of five alleged AQ members and confiscated bomb-making
materials.
On May 9, courts found German citizen Rami Makanesi guilty of
membership in AQ and sentenced him to four years and nine
months' imprisonment. Makanesi had made a full confession.
On June 10, authorities granted parole to Red Army Faction
member Birgit Hogefeld. German courts convicted Hogefeld in
1996 for the murder of a U.S. soldier and her role in the following
bomb attack on the Rhein-Main U.S. air base in 1985. She
served 15 years of her life sentence.
On June 27, the Federal Administrative Court granted the
International Humanitarian Relief Organization a temporary
injunction that enabled it to continue operations until the issuance
of a final verdict on its July 2010 ban. The organization was
banned for funneling money to Hamas.
On November 2, prosecutors indicted German-Afghan citizen
Ahmad Wali Sidiqi, who is suspected of being a member of the
Islamic Movement of Uzbekistan, of training and participating in
combat in the Afghanistan/Pakistan border region.
In November and December, police arrested five persons on
charges related to the terrorist organization National Socialist
Underground, which is considered responsible for ten murders
from 2000 to 2007.
Also in November and December, German courts sentenced eight
members of the Global Islamic Media Front for spreading
propaganda for AQ, al-Qa'ida in Iraq, and Ansar al Islam.
Countering Terrorist Finance: Germany is a member of the
Financial Action Task Force and its Financial Intelligence Unit is a
member of the Egmont Group. German agencies filed 11,042
suspicious transaction reports in 2010 (2011 figures were not
available), designating 124 for suspected terrorist financing.
Germany remained a strong advocate of the United Nations
Security Council Resolutions' 1267/1989 and 1988 Taliban and
AQ sanctions regimes.
On April 6, courts sentenced German citizen Fatih K. to 22
months imprisonment for supporting the German Taliban
Mujahedin with money transfers. Fatih's confession and
disassociation from extremist ideas mitigated the sentence. On
March 9, courts sentenced Filiz Gelowicz, the wife of Sauerland
Group terrorist Fritz Gelowicz, to two and a half years in prison for
producing internet propaganda for the German Taliban Mujahedin
and the Islamic Jihad Union and transferring the equivalent of U.
S. $4,300 to terrorist contacts in Turkey.
For further information on money laundering and financial crimes,
we refer you to the 2011 International Narcotics Control Strategy
Report (INCSR), Volume 2, Money Laundering and Financial
Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.
Regional and International Cooperation: Germany is a founding
member of the Global Counterterrorism Forum and continued to
participate in multilateral counterterrorism initiatives.
Countering Radicalization and Violent Extremism: Germany has
numerous programs to counter violent extremism (CVE), mainly at
the state level. In North-Rhine Westphalia alone, there is the
“Ibrahim Meets Abraham” community relations initiative; the
Information and Education Center against Right-Wing Extremism;
the former National-Socialistic Center Vogelsang, which is now
used for cultural and civic education; the “No Racism in Schools”
and “Prevention of Extremism in Sports” efforts; as well as city
programs. Dortmund has a “Prevention of Extremism in the City of
Dortmund” program. The German Soccer Federation awards a
prize to organizations and persons who use their positions to work
for freedom, tolerance, and humanity and against intolerance,
racism, and hatred. Other cities, such as Cologne, host street
soccer tournaments to bring together non-governmental
organizations and at-risk youth.
The Ministry of Interior launched a security partnership between
Muslims in Germany and security authorities to increase
awareness of radicalization of young people. In January, the
state of Berlin issued a pamphlet countering extremist
interpretations of Islam and democracy, with text in German,
Turkish, and Arabic.
Despite a reported lack of participants, Germany extended its
HATIF (the Arab term for telephone) program to assist Muslim
violent extremists in reintegrating. The Interior Ministry also
continued a project first launched in 2001 to stop radicalization
among young right-wing offenders. The Ministry expanded the
program in 2007 to function in eight states. In 2011, the Interior
Ministry also continued a project in three states to counter
radicalization of young delinquents influenced by violent extremist
ideology.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| GERMANY |
|
Key Findings from last Mutual Evaluation Report
Germany has introduced a number of measures in recent years to
strengthen its anti-money laundering and combating the financing of
terrorism regime. Germany has generated a relatively large number of
prosecutions for money laundering and of orders to confiscate assets.
These achievements occurred despite the shortcomings that were
identified in this assessment.
Many indicators suggest that Germany is susceptible to money
laundering and terrorist financing, including because of its large
economy and financial centre, as well as its strategic location in Europe
and its strong international linkages. Substantial proceeds of crime are
generated in Germany, estimated to be EUR 40 to EUR 60 billion
(approximately USD 60–80 billion), inclusive of tax evasion, annually.
Terrorists have carried out terrorist acts in Germany and in other nations
after being based in Germany. Germany is also estimated to have a
large informal sector (> EUR 400 billion or > EUR 560 billion) and the
use of cash is reportedly high. Germany’s currency is the Euro (€), which
is used widely across Europe, thus making it attractive to organized
criminals and tax evaders.
Key factors that may reduce Germany’s risk profile for money laundering
include its strong legal tradition, the rule of law, its political environment,
and having an effective single financial regulator.
The core elements of Germany’s anti-money laundering and counter-
terrorist financing regime are established in the German Criminal Code,
which contains the money laundering and terrorist financing offenses;
the Money Laundering Act; and the sector-specific laws such as the
Banking Act. The Money Laundering Act established Germany’s financial
intelligence unit (FIU) within the Federal Criminal Police Office (BKA),
imposes customer due diligence (CDD) obligations on a wide range of
financial institutions, and requires these financial institutions to submit
suspicious transaction reports to the competent authorities. The Act was
most recently amended in August 2008, when Germany transposed the
third European Union Money Laundering Directive, and its Implementing
Directive, into national law.
The anti-money laundering and counter-terrorist financing framework is
not fully in line with the FATF Recommendations. There are weaknesses
in the legal framework and in sanctioning for non-compliance with anti-
money laundering and counter-terrorist financing requirements. The
FATF report contains Recommendations to address these issues.
Germany has introduced a number of measures in recent years to
strengthen its anti-money laundering and combating the financing of
terrorism regime. Germany has generated a relatively large number of
prosecutions for money laundering and of orders to confiscate assets.
These achievements occurred despite the shortcomings that were
identified in this assessment.
Many indicators suggest that Germany is susceptible to money
laundering and terrorist financing, including because of its large
economy and financial centre, as well as its strategic location in Europe
and its strong international linkages. Substantial proceeds of crime are
generated in Germany, estimated to be EUR 40 to EUR 60 billion
(approximately USD 60–80 billion), inclusive of tax evasion, annually.
Terrorists have carried out terrorist acts in Germany and in other nations
after being based in Germany. Germany is also estimated to have a
large informal sector (> EUR 400 billion or > EUR 560 billion) and the
use of cash is reportedly high. Germany’s currency is the Euro (€), which
is used widely across Europe, thus making it attractive to organized
criminals and tax evaders.
Key factors that may reduce Germany’s risk profile for money laundering
include its strong legal tradition, the rule of law, its political environment,
and having an effective single financial regulator.
The core elements of Germany’s anti-money laundering and counter-
terrorist financing regime are established in the German Criminal Code,
which contains the money laundering and terrorist financing offenses;
the Money Laundering Act; and the sector-specific laws such as the
Banking Act. The Money Laundering Act established Germany’s financial
intelligence unit (FIU) within the Federal Criminal Police Office (BKA),
imposes customer due diligence (CDD) obligations on a wide range of
financial institutions, and requires these financial institutions to submit
suspicious transaction reports to the competent authorities. The Act was
most recently amended in August 2008, when Germany transposed the
third European Union Money Laundering Directive, and its Implementing
Directive, into national law.
The anti-money laundering and counter-terrorist financing framework is
not fully in line with the FATF Recommendations. There are weaknesses
in the legal framework and in sanctioning for non-compliance with anti-
money laundering and counter-terrorist financing requirements. The
FATF report contains Recommendations to address these issues.
 | Click here to view FATF Report (pdf file) | |
Know
Your
Country
Your
Country
| i |
AML News / Updates
August 1, 2011 - IMF
release report on on
Observance of Standards
and Codes prepared by
the Monetary and Capital
Markets and European
Departments
Read Report
May 1, 2011 - New report
by the Global Forum on
Transparency and
Exchange of Information
to evaluate the country's
legal and regulatory
frameworks and
implementation for re
exchange of information is
made available.
Read Report
Links:
Worldwide AML
Legislation (International
Bar Association)
Zentralstelle für
Verdachtsanzeigen –
Financial Intelligence Unit
August 1, 2011 - IMF
release report on on
Observance of Standards
and Codes prepared by
the Monetary and Capital
Markets and European
Departments
Read Report
May 1, 2011 - New report
by the Global Forum on
Transparency and
Exchange of Information
to evaluate the country's
legal and regulatory
frameworks and
implementation for re
exchange of information is
made available.
Read Report
Links:
Worldwide AML
Legislation (International
Bar Association)
Zentralstelle für
Verdachtsanzeigen –
Financial Intelligence Unit
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Last Updated: 10 March 2013 |