FINANCIAL MONITORING IN GERMANY

An important aspect for the prevention of money laundering is that the money obtained by illegal means is not illegally introduced into cashless payment transactions and thus creates the impression of the legal origin of its acquisition.

To facilitate the fight against money laundering, banks, savings banks and other entities providing financial services are required to verify the source of funds for large payments.

To this end, banks and other financial institutions must implement comprehensive security measures. Each bank can decide for itself what measures it takes and when it considers it necessary to check the legality of the origin of the cash. The Federal Financial Supervisory Authority (BaFin) coordinates the activities of banks and other financial service providers in this area.

Monitoring of cash transactions

Especially strict rules apply here for cash deposits. From August 2021, individuals must provide proper proof of the source of the funds if they deposit more than €10,000 into their own account. For other cash transactions (for example, the purchase of precious metals, currency transactions) that are not carried out in a domestic bank, such confirmation is necessary for amounts over 2,500 euros. If the customer cannot provide proof of origin for such a random transaction, the institution must reject the transaction.

Appropriate documents to confirm the source of funds in accordance with BaFin instructions:

• A statement from the current account of the client’s account in another bank or savings bank, which confirms the issuance of cash.
• Receipts for cash payment from another bank.
• The client’s savings book with the indication of cash payment.
• Sales receipts and invoices (for example, receipts for the sale of a car or precious metal).
• Receipts for currency transactions.
• Testamentary refusal, will, certificate of right to inheritance or similar proof of inheritance.
• Donation contracts.

Our bank lawyer will advise you on the following issues:

• What amount of funds can be deposited in a German bank account?
• What to do when the bank requested documents on the origin of funds?
• What documents confirm the origin of funds?
• Where to get documents confirming the origin of funds?
• What to do if there are not enough documents about the origin of the funds?
• How to withdraw (return) blocked funds in a German bank?
• How to close a bank account?
• How to legally bypass financial monitoring in Germany?
• What to do if there is no source of funds?
• How to pass financial monitoring in a German bank?

A lawyer (lawyer) in the field of banking in Germany is one of our main job profiles.