Germany Country Summary

FATF Status

Germany is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Germany was undertaken in 2023. According to that Evaluation, Germany was deemed Compliant for 17 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 4 of the Effectiveness Compliance ratings.

Germany exhibits a complex landscape of crime and corruption, where significant challenges persist despite a robust legal framework aimed at combating these issues. While corruption remains a concern, particularly in sectors like automotive and construction, the government has strengthened anti-corruption measures and penalties, leading to increased awareness and compliance among businesses; however, organized crime, including human trafficking and drug trafficking, continues to pose significant threats, necessitating ongoing vigilance and reform efforts.

Germany, as Europe's largest economy, presents a robust and attractive environment for foreign direct investment (FDI), characterized by a stable legal framework, advanced infrastructure, and a skilled workforce. The country consistently ranks high for investment appeal, with significant contributions from U.S. investors, particularly in manufacturing, chemicals, and technology sectors. While the German government actively encourages foreign investment, it has also implemented stringent national security measures to screen acquisitions in sensitive industries, reflecting a growing concern over foreign ownership in critical sectors.