Political Dispute Halts Germany’s AML Super Agency Plans

Germany’s initiative to establish a new AML super agency, the Federal Office for Combating Financial Crime (BBF), has encountered a significant political obstacle. The BBF, which the German government has championed as a crucial tool in combating escalating money laundering, was slated to begin operations in 2025.

However, the Green party, a member of Germany’s coalition government, has expressed concerns with the plan to create the agency. As a result, the legislation necessary for the establishment of the BBF will not pass before the parliament’s summer recess. This development has cast doubt on the agency’s operational timeline.

Handelsblatt, a German business publication, reported that the Greens are advocating for additional measures against asset concealment. The Greens have accused the Free Democratic Party (FDP), another coalition partner, of obstructing the measures they wish to incorporate in the BBF’s establishment.

“Our goal is to take more consistent action against financial crime, especially against the big fish,” Andreas Audretsch, the Greens’ deputy parliamentary group leader, told Handelsblatt. “That’s why it’s important that the FDP quickly resolves its dispute over instruments.”

Florian Toncar, the State Secretary for Finance and an FDP representative, described the delay as “extremely problematic.” He expressed concern that potential employees, who were set to start working for the BBF in 2025, “will look for other tasks” and stated that the agency's structure is now “basically impossible to plan.”

At the time of publication, the Green party had not responded to a request for comment from AML Intelligence.

The establishment of the BBF was seen as vital for improving Germany’s international AML reputation. The agency’s creation was announced following a 2022 review by the Financial Action Task Force (FATF), which identified several issues with Germany’s approach to policing money laundering.

In August 2022, Christian Lindner, the Federal Minister for Finance and an FDP representative, acknowledged Germany’s reputation as a “money laundering paradise.” This reputation is partly due to the country’s strong culture of using cash for significant transactions.

Dr. Marcus Sonnenberg, an AML expert, expressed his disappointment over the delay in the BBF’s creation. “This political wrangling does not help anyone. If you [are committed] to the fight against money laundering, then such party tactical manoeuvres should be taboo!” he wrote on LinkedIn.

By fLEXI tEAM