BaFin withdraws existing exemptions
The Federal Financial Supervisory Authority (BaFin) is planning to withdraw or not extend existing exemptions from the Money Laundering Act (GwG). This announcement has far-reaching consequences for many companies, especially those that have so far benefited from eased requirements in fulfilling their anti-money laundering obligations. The measure is part of a strengthened strategy for money laundering prevention and aims to identify and minimize potential risks at an early stage.
The Money Laundering Act is intended to combat money laundering, terrorist financing, and tax evasion. It has also increased the due diligence and compliance requirements for certain businesses, credit institutions, and financial service providers. However, it has also allowed for exceptions. As BaFin announced on June 6, 2025, these exemptions from provisions of the GwG are to be withdrawn with effect from July 10, 2027, according to the commercial law firm MTR Legal Rechtsanwalt, which also advises on white-collar criminal law.
Fight against money laundering and terrorist financing
The Money Laundering Act requires companies to take certain measures to prevent money laundering and terrorist financing. These include, among other things, the identification of customers, the establishment of an effective risk management system, internal safeguards, employee training, and the obligation to report suspicious transactions to the competent authorities. Until now, specific industries, business models, or products could be exempted from certain obligations due to a low risk profile.
However, on July 9, 2024, the European Regulation (EU) 2024/1624, or simply the EU Money Laundering Regulation, came into effect. This does not provide for the exemption of companies from certain provisions. As a result, BaFin must withdraw all exemptions granted from the provisions of the GwG by July 10, 2027.
By planning to revoke these exemptions, BaFin is responding to changing conditions, both at the European level and due to developments in the financial sector. Increasing digitalization, international interconnections, and new business models—particularly in the areas of fintechs and cryptocurrencies—have significantly increased the risk of money laundering. At the same time, Germany has repeatedly been criticized by international organizations such as the Financial Action Task Force (FATF) and the EU Commission in recent years for shortcomings in combating money laundering.
Increased effort for companies
For affected companies, this primarily means increased administrative effort. They must now fully implement all obligations of the Money Laundering Act. This especially includes establishing a company-specific risk management system tailored to their business activities. Companies must also introduce or expand procedures for customer identification (KYC – Know Your Customer). This encompasses both initial identification and ongoing monitoring of business relationships. Internal responsibilities must also be redefined, and a money laundering officer appointed if required by law.
Implementing and maintaining an anti-money laundering system requires not only technical infrastructure but also trained personnel. Smaller companies or start-ups that have previously relied on exemptions will be particularly burdened by these changes. They must expect a significant increase in effort.
Review business models
In addition to the organizational and financial outlay, there is also a need to critically examine existing business models. Products or services that were previously offered with minimal scrutiny may now need to be adjusted or even discontinued if an increased money laundering risk cannot be ruled out. This applies, for example, to standardized payment services, brokerage transactions, or certain financial products with anonymous elements.
Another aspect is the increased scrutiny by supervisory authorities. With the elimination of exemptions, BaFin will increasingly check whether companies are fully meeting their obligations. In cases of violations, companies face hefty fines, criminal consequences, or even supervisory measures such as the withdrawal of licenses. Companies should therefore prepare in good time and ensure that they have adequate internal control mechanisms in place to meet the requirements.
Companies are now required to quickly adapt their internal structures and processes to the new requirements. This can also be seen as an opportunity. Those who invest early in professional compliance structures not only minimize risks but also position themselves as trustworthy and responsible market participants.
MTR Legal Rechtsanwalt advises on the implementation of the EU Money Laundering Regulation and other topics in white-collar criminal law.
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