New Geldwäschebekämpfungsgesetz to Replace the GwG
Germany’s anti-money laundering law is set to undergo a comprehensive overhaul. According to the draft bill prepared by the Bundesministerium der Finanzen (German Federal Ministry of Finance), the Geldwäschegesetz (GwG, German Money Laundering Act) of 2017 is to be repealed with effect from July 10, 2027, and replaced by a new Geldwäschebekämpfungsgesetz (German Anti-Money Laundering Act).
The draft is still being coordinated among the federal ministries involved. A cabinet resolution is planned before the end of the year. No final decision on the legislation has yet been made.
Alignment with the European Anti-Money Laundering Package
The Geldwäschebekämpfungsgesetz is intended to implement the requirements of the Sixth EU Anti-Money Laundering Directive and align national rules with the EU Anti-Money Laundering Regulation and the AMLA Regulation. This is necessary in particular because the EU Anti-Money Laundering Regulation will apply directly from July 10, 2027, without requiring a separate national implementing act.
Many obligations previously governed by the Geldwäschegesetz will in future arise directly from EU law. Due to the resulting need for extensive adjustments, the draft bill provides for a new principal act rather than merely making selective amendments to the existing Geldwäschegesetz.
European Rules as the Basis for the Reform
The planned new legislation is based on the European anti-money laundering package adopted on May 31, 2024. In particular, it comprises:
- Regulation (EU) 2024/1624 contains directly applicable rules on the prevention of money laundering and terrorist financing.
- Directive (EU) 2024/1640 establishes minimum requirements for regulatory supervision and sanctions.
- Regulation (EU) 2024/1620 establishes the Anti-Money Laundering Authority, a European supervisory authority based in Frankfurt am Main.
The EU Anti-Money Laundering Regulation will replace large parts of the existing German rules. The Geldwäschebekämpfungsgesetz is therefore primarily intended to contain the national provisions that remain necessary and to reorganize the responsibilities of the German authorities.
Cash Payment Limit in Business Transactions
From July 10, 2027, an EU-wide limit of EUR 10,000 is to apply to cash payments. It will cover payments for goods and services in the course of business.
Transactions between private individuals will not be subject to this limit. The rule is intended in particular to cover transactions involving large amounts of cash, which generally do not create a payment trail comparable to that generated by cashless transactions.
Central Coordination of Anti-Money Laundering Supervision
A “Zentrale Koordinierungsstelle Geldwäscheaufsicht” (Central Coordination Office for Anti-Money Laundering Supervision) is to be established at the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin, German Federal Financial Supervisory Authority). Its role will be to coordinate decentralized anti-money laundering supervision in the non-financial sector.
Actual supervisory responsibility will remain with the respective competent authorities. The coordination office will have neither the power to issue instructions to other supervisory authorities nor the authority to intervene directly.
Expanded Powers for the FIU
The powers of the Financial Intelligence Unit (FIU), which is part of the German customs administration, are also to be expanded. The FIU is to be authorized to instruct obliged entities to monitor transactions involving specific accounts for a defined period and to report on them.
In addition, accounts are to be capable of being frozen for up to five working days. This is intended to allow suspicious financial movements to be halted at short notice and examined more closely.
Expanded Access to Account and Real Estate Data
The reform is intended to facilitate access by the competent authorities to relevant financial and asset information. In future, the existing account information retrieval procedure is also to include crypto-asset accounts and virtual IBANs.
Central Access Point for Real Estate Information
A central access point for real estate information is also to be established by July 10, 2029. In particular, the following information is to be consolidated there:
- The access point is to record land register and cadastral data.
- It is to contain information on purchase prices, owners, and encumbrances.
- Ownership and purchase price histories are to be available retrospectively as far back as July 8, 2019.
Law enforcement authorities, the FIU, the competent supervisory authorities, and the European Anti-Money Laundering Authority (AMLA) are to be granted access to this data. The Grundbuchämter (German land registry offices) are to complete the initial data transfer by July 31, 2028. The relevant dataset is to be the data held as of June 30, 2028.
Extensive Investigative Work Required for Concealed Financial Flows
According to the Bundeskriminalamt (BKA, German Federal Criminal Police Office), the losses caused by money laundering amounted to at least EUR 1.5 billion in 2025. At the same time, security authorities are increasingly recording professionally organized and digitally executed methods.
The cross-border structure of many transactions makes investigations even more difficult. Tracing complex financial flows in particular can require considerable effort. The planned reform is therefore intended to strengthen both cooperation among authorities and access to relevant data.
Far-Reaching Consequences for Obliged Entities
The overhaul affects credit and financial institutions as well as numerous companies outside the financial sector. In addition to the directly applicable obligations under the EU Anti-Money Laundering Regulation, national responsibilities, enforcement powers, and access to data will be restructured.
As the legislative process has not yet been completed, individual provisions may change before the legislation is adopted. Companies, investors, and high-net-worth private individuals with questions concerning the proposed obligations and their significance for banking and financial transactions can obtain legal advice on banking law from MTR Legal tailored to the circumstances of their particular case.
